Femi Falana, a respected human rights lawyer, has raised concerns over the Nigerian National Petroleum Company Limited (NNPCL) fixing the price of petrol produced at the Dangote Refinery. He claims that this action is illegal and goes against the regulations of the Petroleum Industry Act (PIA).

Falana pointed out that Section 205 of the PIA clearly states that the price of petroleum products should be determined by market forces after deregulation. Despite this, NNPCL recently announced that petrol from the Dangote Refinery will sell at N950 per litre in Lagos and more than N1,000 per litre in some northern states.

He explained that this price is unjustifiable because the petrol from Dangote is locally produced and does not incur additional costs like freight, storage, and customs duties, unlike imported petrol. According to Falana, NNPCL’s decision violates the principles of deregulation outlined in the PIA.

Additionally, the Independent Petroleum Marketers Association of Nigeria (IPMAN) also criticized NNPCL’s pricing, stating that it makes no sense for petrol produced in Nigeria to be more expensive than imported fuel.

The issue has sparked widespread debate in Nigeria, with many questioning NNPCL’s pricing strategy and its impact on consumers, especially given the current economic challenges in the country.

In conclusion, Falana’s remarks bring to light potential legal and economic concerns with NNPCL’s handling of petrol pricing, and the need for adherence to the laws governing the oil sector.