Petrol price hike and fuel scarcity update for November 7th, 2024
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.
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 marketers—AYM Shafa Limited, A.A. Rano Limited, and Matrix Petroleum Services Limited—argue that allowing Dangote to dominate the petroleum market could lead to skyrocketing fuel prices and create an overdependence on a single source for the nation’s energy needs.
In response to a lawsuit Dangote filed under case number FHC/CS/ABJ/1324/2024, the marketers claim that Dangote does not currently produce enough petroleum to satisfy Nigeria’s daily consumption, and they noted that no evidence has been provided to suggest otherwise.
The lawsuit, filed by Dangote in September 2024, seeks a court declaration that the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) breached sections of the Petroleum Industry Act (PIA) by issuing licenses for petroleum imports.
Dangote argues these licenses should only be issued during shortages and also claims that NMDPRA is failing to support local refineries, like Dangote’s, in line with the PIA.
However, in a counter affidavit dated November 5, 2024, the marketers, through a representative, Ali Ibrahim Abiodun, defended their right to receive import licenses, asserting that allowing Dangote exclusive control would stifle competition, inflate fuel prices, and worsen the economic crisis facing Nigeria.
Oil marketers in Nigeria have expressed readiness to collaborate with Dangote Refinery by purchasing refined Premium Motor Spirit (PMS) from the facility, affirming their support for the local refinery.
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, emphasized that oil marketers are open to buying products from the refinery if all necessary market terms and conditions are met.
“We are willing to engage with Dangote Refinery, provided market indices align to create a beneficial arrangement for both parties,” Billis-Harry noted.
The PETROAN president also announced that a meeting had been scheduled this week between oil marketers and Dangote Refinery officials to finalize discussions on establishing a seamless working relationship.
This engagement is expected to cover agreements on pricing, distribution logistics, and other operational terms.
