It is illegal for NNPCL to fix price of Dangote petrol – Falana

“It is illegal for the Nigerian National Petroleum Company Limited, NNPCL, to determine the price of Premium Motor Spirit, also known as petrol, for the Dangote Refinery after deregulation,” argues Femi Falana, SAN, a human rights lawyer. “Petrol” is another name for Premium Motor Spirit.

The move taken by the NNPCL is in violation of Section 205 of the Petroleum Industry Act (PIA), according to Falana, who made this statement that was released on Tuesday.

Under the provisions of the Petroleum Industry Act (PIA), the Nigerian National Petroleum Corporation Limited (NNPCL) made a statement on September 5, 2024, stating that foreign exchange (forex) illiquidity had been a significant factor that had been influencing the fluctuation in prices of Premium Motor Spirit (PMS). These fluctuations were governed by unrestrained market forces.While the NNPCL was providing an explanation, the pump price of PMS that was brought into the country at the time was being discussed. To be more specific, Mr. Adedapo Segun, Executive Vice President of Downstream NNPC Ltd., said that Section 205 of the Petroleum Industry Act (PIA), which formed NNPC Ltd., prescribed that the pricing of petroleum were set by the forces of the free market.

Read Also: Ogun landlord defiles tenant’s 14-year-old daughter

“But contrary to the well-publicised statement, the NNPCL has fixed the price of PMS produced by the Dangote Refinery and Petrochemical Company Limited. Section 205 of the Petroleum Industry Act (PIA) states that the prices of petroleum products are to be set by market forces. The action taken by the NNPCL is a flagrant violation of this provision.

The Nigerian National Petroleum Corporation (NPCL) is unable to justify the sale of petrol at N950 per litre without taking into account freight costs, lightering costs, jetty depot fees, storage fees, foreign exchange costs, NPA charges, NIMASA charges, and customs duties, among other things, he said. “Furthermore, because the petrol that Dangote sells is not imported into the country but rather produced at the Lekki Economic Free Trade Zone,” he added.

The NNPCL began the process of PMS lifting from the Dangote Refinery, which was the immediate cause of Falana’s reaction.

It was remembered that as soon as lifting began, NNPCL made an announcement that the product would be sold for greater than N1,000 per liter in states such as Borno, and that it would be priced at N950 per liter in Lagos State and the surrounding areas.

On Monday, the Independent Petroleum Marketers Association of Nigeria (IPMAN) voiced its disapproval of the Nigerian National Petroleum Corporation (NNPCL), stating that it was not appropriate for the price of fuel that was extracted from the Dangote Refinery to be higher than the price of imported petrol.