It is illegal for NNPCL to fix price of Dangote petrol – Falana
It is illegal for NNPCL to fix price of Dangote petrol – FalanaA Senior Advocate Of Nigeria, Femi Falana, has claimed that it is “illegal” for the the Nigerian National Petroleum Corporation Limited, NNPCL, to determine prices of Premium Motor Spirit (PMS) also known as petrol after deregulation.
In a statement on Tuesday, Falana said the action of the National Nigerin Petroleum Company Limited violates section 205 of the Petroleum Industry Act (PIA).
He said, “On September 5, 2024, the Nigerian National Petroleum Corporation Limited (NNPCL) stated that foreign exchange (forex) illiquidity had been a significant factor influencing the fluctuation in prices of Premium Motor Spirit (PMS) governed by unrestrained market forces, as provided for in the Petroleum Industry Act (PIA).
“The NNPCL was explaining the pump price of PMS imported into the country at the material time. Specifically, the Executive Vice President of Downstream NNPC Ltd Mr. Adedapo Segun, explained that Section 205 of the PIA, which established NNPC Ltd, stipulated that petroleum prices were determined by free market forces. According to him, “The market has been deregulated, meaning that petrol prices are now determined by market forces rather than by the government or NNPC Ltd.
Additionally, the exchange rate plays a significant role in influencing these prices.”
‘But contrary to the well-publicised statement, the NNPCL has fixed the price of PMS produced by the Dangote Refinery and Petrochemical Company Limited. The action of the NNPCL is a violent contravention of section 205 of the PIA, which stipulates that the prices of petroleum products shall be determined by market forces.
