Fuel price increase and scarcity report for November 7, 2024
As Nigerians continue to grapple with the rising costs of fuel from recent price hikes by the Nigerian National Petroleum Company (NNPC), Famzigist reports on the ongoing petrol shortages, price increases, and reactions from both officials and citizens.
In a legal filing with the Federal High Court in Abuja, three major oil companies—AYM Shafa Limited, A.A. Rano Limited, and Matrix Petroleum Services Limited—cautioned that allowing Dangote Petroleum Refinery to control the oil sector could harm Nigeria’s economy and energy stability. They warned that giving Dangote a monopoly could lead to even higher fuel prices and create a risky dependence on a single supplier for the country’s fuel needs.
In response to a lawsuit filed by Dangote in September 2024 (case FHC/CS/ABJ/1324/2024), these marketers argued that Dangote does not produce enough fuel to meet Nigeria’s daily needs. They claimed there is no proof showing Dangote can supply the required volume.
Dangote’s lawsuit argues that the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) violated the Petroleum Industry Act (PIA) by issuing import licenses without a proven fuel shortage, and alleges that NMDPRA is not adequately supporting local refineries like Dangote’s.
However, in a statement dated November 5, 2024, the marketers, represented by Ali Ibrahim Abiodun, argued that they should still receive import licenses. They emphasized that giving Dangote exclusive control would hurt competition, drive up fuel prices, and worsen Nigeria’s economic challenges.
Meanwhile, Nigerian oil marketers expressed their willingness to work with Dangote Refinery, confirming their interest in purchasing refined fuel (PMS) from the refinery if favorable market conditions are met. The President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Gilli Billis-Harry, stated on Channels Television’s *Morning Brief* that marketers are ready to buy from Dangote Refinery if terms are mutually beneficial.
Billis-Harry also shared that a meeting between oil marketers and Dangote Refinery representatives is scheduled this week to finalize their partnership, covering aspects like pricing, distribution, and other operational details.
