Senior Advocate of Nigeria and Human Rights Activist, Femi Falana, has condemned the Nigerian National Petroleum Corporation Limited (NNPCL) for its role in determining the price of Premium Motor Spirit (PMS), commonly known as petrol, following the deregulation of the sector.
According to Falana, the actions of state oil companies are illegal and violate the provisions of the Petroleum Industry Act (PIA).
In a statement released on Tuesday, Falana referenced Section 205 of the PIA, noting that the law mandates that petroleum prices be determined by free market forces, not by NNPCL.
He argued that the company’s involvement in price-setting contradicts the deregulation process that the law stipulates.
He said, “On September 5, 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).
“The NNPCL was explaining the pump price of PMS imported into the country at the material time. Specifically, the Executive Vice President of Downstream NNPC Ltd Mr. Adedapo Segun, explained that Section 205 of the PIA, which established NNPC Ltd, stipulated that petroleum prices were determined by free market forces.
