Kemisola Oye
CONSTITUTIONAL lawyer and human rights crusader, Mr Femi Falana (SAN) has called on the Federal Competition and Consumer Protection Commission (FCCPC) to stop the Nigerian National Petroleum Corporation Limited (NNPCL) from exercising monopolistic control on Premium Motor Spirit (PMS) produced by Dangote Petroleum Refinery Limited.
In a press statement made available to Eighteen-Eleven Media, the senior counsel who is also the Chairman of Alliance on Surviving COVID-19 and Beyond (ASCAB), said that the exclusive purchase of petrol from Dangote Petroleum Refinery by the NNPCL is completely at variance with the letter and spirit of Section 205 of the Petroleum Industry Act (PIA).
He said other marketers should be at liberty to purchase petrol directly from Dangote Petroleum Refinery and distribute it to outlets in all the states of the Federation.
Falana referred to the explanation of the Executive Vice President, Downstream of NNPC Limited, Mr. Adedapo Segun, that Section 205 of the PIA, which established NNPC Limited stipulated that petroleum prices were determined by free market forces.
“On 5 September 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).”
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 Petroleum 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.”
Falana maintains that while the petrol sold by Dangote Petroleum Refinery is not imported into the country but produced at the Lekki 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.
“The NNPCL has justified the hike by saying that petrol is sold in dollars by the Dangote Refinery. Why should the NNPCL buy petrol in dollars since the Federal Executive Council (FEC) has directed that crude oil be sold to Dangote Refinery in Naira?
“Are the management staff of NNPCL and Dangote Refinery not aware that it is a criminal offence under Section 20 of the Central Bank Act to refuse to accept the naira as a means of payment for any transaction in the country? Mr Falana queried.
Eighteen-Eleven Media