Human rights activist and Senior Advocate of Nigeria, Femi Falana, has criticized the Nigerian National Petroleum Corporation Limited (NNPCL) for setting the price of Premium Motor Spirit (PMS), commonly known as petrol, produced by the Dangote Refinery. He described the NNPCL’s action as “illegal” and a violation of Section 205 of the Petroleum Industry Act (PIA).
In a statement on Tuesday, Falana noted that the PIA mandates that petrol prices be determined by market forces, especially after the deregulation of the market. He explained that NNPCL’s decision to fix the price of petrol produced domestically by Dangote Refinery contradicts this provision.
Falana stated, “On September 5, 2024, NNPCL attributed the fluctuating petrol prices to forex illiquidity, as governed by market forces under the PIA. However, the corporation’s decision to fix the price of petrol from the Dangote Refinery at ₦950 per liter violates Section 205, which calls for prices to be driven by the free market.”
He argued that because the Dangote Refinery is located within Nigeria, at the Lekki Economic Free Trade Zone, the NNPCL should not factor in costs such as freight, jetty depot fees, and foreign exchange, which apply to imported petrol. He added that the decision to sell petrol produced by Dangote at a higher price than imported fuel undermines the national economy.
Falana also questioned why NNPCL would buy petrol from Dangote in dollars when the Federal Executive Council has directed that crude oil be sold to the refinery in naira. He noted that refusing to accept the naira for domestic transactions is a violation of Section 20 of the Central Bank Act.
In his statement, Falana called on the Federal Competition and Consumer Protection Commission to prevent NNPCL from maintaining monopolistic control over the petrol produced by Dangote Refinery, advocating for other marketers to have access to purchase and distribute the product.
This criticism follows NNPCL’s announcement that petrol from the Dangote Refinery would sell for ₦950 per liter in Lagos and over ₦1,000 per liter in some northern states. The Independent Petroleum Marketers Association of Nigeria (IPMAN) also voiced its disapproval, stating that selling locally produced petrol at a higher price than imported fuel was unjustifiable.
