Oil Marketers Challenge Dangote’s Monopoly Bid, Express Willingness To Collaborate.
As fuel prices rise across Nigeria, three leading oil marketers have raised concerns over the potential monopoly of Dangote Petroleum Refinery, urging the Federal High Court in Abuja to prevent it from dominating the country’s oil market. The marketers—AYM Shafa Limited, A.A. Rano Limited, and Matrix Petroleum Services Limited—warned that giving Dangote exclusive control could escalate fuel prices and compromise Nigeria’s energy security by increasing reliance on a single supplier.
In their response to a lawsuit filed by Dangote in September, these companies argued that Nigeria’s daily petroleum demand exceeds Dangote’s current production capacity. They cautioned that monopolising the market would hinder competition and worsen the country’s economic crisis. Dangote’s lawsuit, filed under case number FHC/CS/ABJ/1324/2024, seeks to restrict the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) from issuing petroleum import licences, claiming that under the Petroleum Industry Act (PIA), such licences should only be granted in cases of shortages and that local refineries should be prioritised.
However, in a counter-affidavit dated 5 November 2024, the marketers defended their right to import licences, stating that limiting the market to a single player would be detrimental to the economy and consumers.
Despite the legal challenges, Nigerian oil marketers have expressed willingness to collaborate with Dangote Refinery. The President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Gilli Billis-Harry, announced on Channels Television that marketers are open to purchasing refined Premium Motor Spirit (PMS) from the Dangote facility, provided that fair market terms are in place. “We are willing to engage with Dangote Refinery, provided market indices align to create a beneficial arrangement for both parties,” Billis-Harry noted.
A meeting is scheduled this week between oil marketers and Dangote Refinery representatives to discuss potential pricing, logistics, and distribution terms. This collaboration is expected to foster a cooperative relationship, enhancing the supply of refined fuel products while safeguarding competition and preventing excessive price increases.
With fuel scarcity and price hikes impacting the nation, this engagement marks a critical step towards stabilising Nigeria’s energy market.
