Femi Falana, a lawyer and human rights activist, affirmed that the government-owned oil company, Nigerian National Petroleum Corporation Limited (NNPCL), should not be allowed to set the price of petrol after deregulation.

A press release by Falana on Tuesday, September 17, 2024 stated that the action of the NNPCL contravenes Section 205 of the Petroleum Industry Act (PIA).

He said, On 5 September, 2024, the NNPCL announced that foreign exchange (forex) illiquidity had been an important factor impacting the changes in prices of Premium Motor Spirit (PMS) governed by uncontrolled market dynamics, as provided for in the Petroleum Industry Act (PIA).

The NNPCL was narrating the pump price of PMS imported into Nigeria at the material time. Specifically, the Executive Vice President of Downstream NNPC Ltd, Mr. Adedapo Segun, revealed that Section 205 of the PIA, which established NNPC Ltd, stipulated that petroleum prices were resolute by free market dynamics.

On his part, The market has been deregulated, meaning that petrol prices are now determined by market dynamics rather than by the government or NNPC Ltd. Similarly, the exchange rate plays an important role in influencing these prices.

‘But contrary to the well-publicised statement, the Nigerian National Petroleum Corporation Limited has fixed the price of PMS manufactured by the Dangote Refinery and Petrochemical Company Limited. The act of the NNPCL is a violent infringement of Section 205 of the PIA, which states that the prices of PMS shall be determined by market dynamics.

Meanwhile, since the Premium Motor Spirit sold by Dangote's company is not imported into Nigeria but manufactured at the Lekki Economic Free Trade Zone, the Nigerian National Petroleum Corporation Limited cannot defend 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.