LEAKS: NNPC LTD NATIONWIDE PMS PUMP PRICES IS ILLEGAL!
The new pricing template released by the NNPC Ltd is illegal to the extent that both the 2023 Appropriation Act and the former PMB's Federal Government through the former Hon. Minister of Finance approved that the fuel subsidy removal policy is to come into effect on June 31st, 2023 as provided for in the 2023 Appropriation Act.
Hence, what is going on at the moment in this regard is illegal. Both the NNPC Ltd and the downstream regulator are in defiance of the Appropriation Act and directive of the Federal Ministry of Finance on this matter.
Furthermore, the new pricing template released by the NNPC Ltd is a mere allocative pricing regime and not free market competitive supply and demand driven pricing regime!
The new pricing regime or template defies the basic and fundamental principles of a deregulated pricing regime as championed by the government, the NNPC Ltd and private market operators in the industry!!
And, by the way, it is not the statutory responsibility of the NNPC Ltd to generate a pricing template for petroleum products. It is the statutory responsibility of the downstream regulator (probably, in consultation with the President or his designated Minister of Petroleum and or Finance).
NNPC Ltd is an operator in the industry like Dangote Refinery and Petro Chemicals Ltd, Oando, etc etc. Therefore, it cannot wear two caps at the same time; operator and regulator!!!
Even if the new price template is applicable to the NNPC Ltd retail outlets only, there is the need for the NNPC Ltd Management to obtain permission or clearance from the downstream regulator for them to adjust its prices upward in the market just as it is with the electricity supply and the telecoms industries whereby the Nigerian Electricity Regulatory Commission (NERC) and Nigerian Communications Commission (NCC) are the statutory entities respectively that permit electricity tariff and telecoms rates changes or upward adjustments.
Therefore, it is illegal to start charging new PMS price before June 31st 2023.
Finally, President Bola Ahmed Tinubu (PBAT) swore to an Oath of office and Alligiance to the Constitution of the Federal Republic of Nigeria and the Law in running his administration. This illegal act by the NNPC Ltd is a dent on and an affront to the Oath of office sworn by PBAT on Monday, May 29th, 2023!!!
