Nigerian Human Rights Lawyer Slams NNPCL Over Petrol Price Fixing

A prominent human rights lawyer, Femi Falana, has sparked controversy by declaring that the Nigerian National Petroleum Company Limited (NNPCL) has illegally fixed the price of Premium Motor Spirit (PMS), also known as petrol, for the Dangote Refinery. According to Falana, the action contravenes Section 205 of the Petroleum Industry Act (PIA), which stipulates that petroleum prices should be determined by market forces.

The controversy began when NNPCL announced that the PMS produced by the Dangote Refinery would sell for N950 per litre in Lagos State and its environs, and above N1,000 per litre in states such as Borno. Falana, who spoke in a statement on Tuesday, argued that the price fixation is illegal because the petrol is not imported into the country but produced locally at the Lekki Economic Free Trade Zone.

The lawyer pointed out that NNPCL had earlier stated that foreign exchange illiquidity had been a significant factor influencing the fluctuation in prices of PMS governed by unrestrained market forces. However, Falana claimed that the NNPCL has failed to justify the sale of petrol at N950 per litre without considering various costs such as freight, lightering, jetty depot fees, storage fees, foreign exchange costs, NPA charges, NIMASA charges, and Customs duties.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has also criticized NNPCL, saying it is not right for petrol lifted from the Dangote Refinery to cost higher than imported ones. The association has called for a review of the pricing mechanism to ensure that local refineries are not disadvantaged.

The dispute highlights the ongoing challenges in the Nigerian oil and gas sector, where regulatory bodies and industry players often clash over issues such as pricing, taxation, and environmental concerns. As the country continues to grapple with fuel scarcity and pricing controversies, the Falana’s outburst has raised important questions about the transparency and accountability of NNPCL’s pricing decisions.