As Nigerians continue to feel the impact of recent fuel price hikes by the Nigerian National Petroleum Company (NNPC) Limited, Gistreel brings the latest updates on petrol shortages, fuel price increases, and reactions from both the government and the public. The rise in fuel prices, alongside the growing scarcity of petrol, has sparked widespread concern across the country, with many Nigerians expressing frustration over the increased cost of living and the challenges of accessing fuel. Public transport costs have surged, and businesses reliant on fuel are grappling with rising operational costs. Nigerians have taken to social media platforms to voice their dissatisfaction with the price hikes, calling for government intervention to alleviate the burden on ordinary citizens.
Three leading oil marketers have warned the Federal High Court in Abuja that granting the Dangote Petroleum Refinery a monopoly in Nigeria’s oil sector could seriously affect the country’s economy and energy security. The oil marketers—AYM Shafa Limited, A.A. Rano Limited, and Matrix Petroleum Services Limited—have voiced concerns over the potential implications of a monopoly, which they argue could lead to a drastic increase in fuel prices and create an unhealthy dependence on a single source for the nation’s petroleum needs. The marketers believe that such a scenario would stifle competition in the market, which could lead to price manipulation, and ultimately harm Nigeria's economic stability and energy security in the long term.
In response to a lawsuit filed by Dangote in September 2024 under case number FHC/CS/ABJ/1324/2024, the marketers claim that Dangote currently does not produce enough petroleum to meet Nigeria’s daily consumption levels. They have also highlighted that no evidence has been presented to suggest that Dangote’s refinery is capable of handling the country’s full petroleum needs. The marketers are asserting their right to continue receiving import licenses, arguing that this is necessary to ensure the ongoing supply of fuel in the country. They also point out that the Nigerian government’s decision to issue these import licenses aligns with the need to diversify sources of petroleum supply, which is crucial to maintaining a stable and competitive fuel market.
The lawsuit, filed by Dangote, seeks a court declaration that the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) breached certain sections of the Petroleum Industry Act (PIA) by issuing licenses for petroleum imports. Dangote contends that these licenses should only be issued in cases of shortages and that the NMDPRA is failing to sufficiently support local refineries, including Dangote’s own facility, in line with the provisions of the PIA. In the lawsuit, Dangote argues that the issuance of these licenses undermines local production capacity and ultimately hurts the Nigerian economy, as it results in reliance on imported petroleum rather than supporting domestic refining capabilities.
However, in a counter affidavit dated November 5, 2024, the marketers, represented by Ali Ibrahim Abiodun, defended their right to receive import licenses. They argue that granting Dangote exclusive control over the petroleum market would restrict competition, drive up fuel prices, and exacerbate the economic challenges currently facing Nigeria. The marketers are also emphasizing their commitment to working with Dangote’s refinery and purchasing refined Premium Motor Spirit (PMS) from the facility, should the terms and conditions be mutually beneficial. They are keen to ensure that any collaboration with Dangote Refinery supports a healthy and competitive market that is beneficial for both the refinery and the wider Nigerian population.
Speaking on Channels Television’s Morning Brief on Tuesday, the President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Gilli Billis-Harry, highlighted the willingness of oil marketers to engage with Dangote Refinery, provided that market terms align to create a fair and beneficial arrangement for all parties involved. Billis-Harry assured that the oil marketers were not opposed to collaborating with Dangote’s refinery but stressed that the arrangement must be based on favorable pricing, competitive conditions, and logistical feasibility.
“We are willing to engage with Dangote Refinery, provided market indices align to create a beneficial arrangement for both parties,” Billis-Harry noted during the interview. “It is essential that the terms of engagement are in line with market realities and ensure that Nigerians can access fuel at competitive prices.”
In further developments, Billis-Harry announced that a meeting had been scheduled between oil marketers and Dangote Refinery officials this week. This meeting aims to finalize discussions on the potential collaboration and establish a seamless working relationship. The discussions are expected to focus on key issues such as pricing, distribution logistics, and other operational terms necessary to ensure an efficient and sustainable supply chain. Both parties are keen on fostering cooperation to ensure a steady supply of refined petroleum products while maintaining competitive pricing for consumers. The outcome of these talks will likely have significant implications for Nigeria’s oil market and fuel pricing in the near future.
