Senior Advocate of Nigeria and human rights activist, Femi Falana, has denounced the Nigerian National Petroleum Corporation Limited (NNPCL) for its pricing of Premium Motor Spirit (PMS) from the Dangote Refinery, labeling the action as “illegal.” In a statement released on Tuesday, Falana argued that NNPCL’s pricing strategy contravenes Section 205 of the Petroleum Industry Act (PIA).

Falana criticized NNPCL for its explanation on September 5, 2024, regarding the impact of foreign exchange scarcity on PMS prices. He noted that NNPCL’s Executive Vice President of Downstream, Mr. Adedapo Segun, had previously asserted that petroleum prices should be determined by market forces, as per Section 205 of the PIA.

However, Falana contended that NNPCL’s decision to fix the price of PMS produced by the Dangote Refinery at ₦950 per litre is unjustifiable. He highlighted that since this petrol is locally produced and not imported, the pricing does not align with the principles of market-driven pricing as stipulated by the PIA. “NNPCL cannot justify the sale of petrol at ₦950 per litre without including costs such as freight, lightering, storage, and foreign exchange,” he said.

Falana also questioned NNPCL’s reasoning for pricing the petrol in dollars when the Federal Executive Council has mandated that crude oil be sold in Naira. He argued that refusing to accept Naira as payment is a criminal offense under Section 20 of the Central Bank Act.

Furthermore, Falana criticized NNPCL’s exclusive purchase of petrol from the Dangote Refinery, calling for the Federal Competition and Consumer Protection Commission to prevent monopolistic practices. He advocated for allowing other marketers to purchase and distribute petrol directly from the refinery.

The criticism follows NNPCL’s recent announcement of lifting PMS from the Dangote Refinery, with prices set at ₦950 per litre in Lagos and exceeding ₦1,000 per litre in other states. The Independent Petroleum Marketers Association of Nigeria (IPMAN) has also voiced concerns, with IPMAN’s National Welfare Officer, John Kekeocha, questioning the rationale behind higher prices for locally produced petrol compared to imported products.