Human rights lawyer, Femi Falana, SAN, has condemned the Nigerian National Petroleum Company Limited (NNPCL) for setting the price of Premium Motor Spirit (PMS) produced by Dangote Refinery, calling it illegal under the Petroleum Industry Act (PIA).
In a statement on Tuesday, Falana pointed out that NNPCL’s actions violate Section 205 of the PIA, which mandates that fuel prices be determined by market forces after deregulation.
Falana referenced a previous explanation by NNPCL regarding PMS price fluctuations due to foreign exchange challenges. He criticized the company for going against its own stance by fixing the price of petrol from Dangote Refinery.
He argued, “The NNPCL’s action blatantly contravenes Section 205 of the PIA, which ensures that petroleum product prices are governed by free market forces.”
He also noted that since the Dangote Refinery is located within Nigeria’s Lekki Free Trade Zone, NNPCL cannot justify the high price of N950 per litre, as it bypasses costs typically associated with imported fuel, such as freight, foreign exchange, and customs duties.
Falana’s remarks follow NNPCL’s announcement of the commencement of PMS lifting from Dangote Refinery, with prices set at N950 per litre in Lagos and over N1,000 in other states like Borno.
His statement aligns with criticism from the Independent Petroleum Marketers Association of Nigeria (IPMAN), which argued that locally produced fuel should not be more expensive than imported fuel.
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