Dangote Petrol: Falana Explains Why It Is Illegal For NNPCL To Fix Price
- Senior Advocate of Nigeria, Femi Falana has explained why it is ‘illegal” for the NNPCL to determine petrol prices
- Falana said NNPCL determining the price of petroleum products in the country violates section 205 of the Petroleum Industry Act (PIA)
- He said the petroleum sector has been deregulated as such prices should be determined by market forces
Legit.ng journalist Adekunle Dada has over 5 years of experience covering metro, government policy, and international events.
Lagos state - Human Rights Activist, Femi Falana has said it is ‘illegal” for the National Nigerian Petroleum Company Limited (NNPCL) to determine prices of Dangote petrol after deregulation.
Falana said NNPCL’s action violates section 205 of the Petroleum Industry Act (PIA).
Source: UGC
As reported by Channels Television, this was contained in a statement issued on Tuesday, September 17.
It's illegal for NNPCL to fix petrol price
According to the statement, the Executive Vice President of Downstream NNPC Ltd, Adedapo Segun, explained that Section 205 of the PIA, stipulated that petroleum prices were determined by free market forces.
Adedapo said the market has been deregulated and petrol prices are now determined by market forces rather than by the government or NNPC Ltd.
He also said the exchange rate plays a significant role in influencing these prices.”
Explaining the contradiction in NNPCL’s action in fixing the petrol price for Dangote, Falana said:
“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.
“Furthermore, since the petrol sold by Dangote is not imported into the country but produced at the Lekki Economic Free Trade Zone, the NNPCL can not justify the sale of petrol at N950 per litre without freight cost, lightering cost, jetty depot fees, storage fees, foreign exchange costs, NPA charges: NIMASA charges, Customs duties etc. In fact, by selling the petrol produced by Dangote Refinery at a higher price, the NNPCL has confirmed its resolve to continue to sabotage the national economy through the reckless importation of cheaper petrol from foreign countries at a cost that the nation cannot afford."
NNPC updates Dangote petrol pricing
Meanwhile, Legit.ng reported that the NNPC updated its petrol pricing breakdown for the supply sourced from Dangote Refinery.
The new update relates to the charges for reducing regulatory fees and adjusting distribution costs.
The NNPC also maintained its new pump prices for Dangote petrol across its filling stations earlier announced
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Source: Legit.ng
