As Nigerians continue to grapple with recent fuel price increases by the Nigerian National Petroleum Company (NNPC) Limited, Gistreel brings the latest updates on petrol shortages, price hikes, and responses from the government, public, and industry stakeholders.
In a developing dispute, three major oil marketers—AYM Shafa Limited, A.A. Rano Limited, and Matrix Petroleum Services Limited—have cautioned the Federal High Court in Abuja about the economic risks of granting Dangote Petroleum Refinery a monopoly in Nigeria’s oil sector. These marketers argue that such control could lead to excessive fuel prices and create dependency on a single source for Nigeria’s energy supply, potentially threatening economic stability.
Their warning comes in response to a lawsuit filed by Dangote in September 2024 (case number FHC/CS/ABJ/1324/2024), which seeks a declaration that the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) violated the Petroleum Industry Act (PIA) by issuing licenses for petroleum imports. Dangote contends that these licenses should only be granted in times of scarcity and claims that the NMDPRA is neglecting its duty to support local refineries under the PIA, including Dangote’s.
However, in a counter-affidavit dated November 5, 2024, the marketers defended their right to receive import licenses, stating that an exclusive market for Dangote would reduce competition, inflate fuel prices, and further exacerbate Nigeria’s economic challenges. They highlighted that Dangote’s refinery alone cannot currently meet Nigeria’s daily petroleum demand.
Despite these legal disputes, Nigerian oil marketers have shown a willingness to work with the Dangote Refinery, expressing openness to purchasing refined Premium Motor Spirit (PMS) from the facility. In a statement on Channels Television’s *Morning Brief* program, Gilli Billis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), emphasized their readiness to collaborate with the refinery under mutually beneficial terms.
“We are open to engaging with Dangote Refinery, provided market conditions align to create an arrangement that benefits all parties,” Billis-Harry noted.
Comments are closed.