Fuel Importers Challenge Dangote’s Monopoly Of Product
Nigerian oil marketers including A. A. Rano Limited, Matrix Petroleum Services Limited and AYM Shafa Limited have approached court of law to challenge approval for Dangote Refinery petrol market monopoly.
The markers argued that Dangote fuel monopoly could destabilise the nation’s energy sector, driving up prices and increasing economic hardship.
The marketers also asked the Federal High Court in Abuja to dismiss a suit filed by Dangote Petroleum Refinery and Petrochemicals.
They argue that Dangote’s refinery cannot meet the daily fuel demands of Nigerians, noting that competition in fuel imports helps keep prices manageable.
The marketers contend that relying solely on one company could result in supply shortages and put the nation in jeopardy.
The marketers, in a joint counter affidavit marked, FHC/ABJ/CS/1324/2024, and dated November 5, 2024, which was a response to an originating summon filed by Dangote Petroleum Refinery and Petrochemicals, argued that granting the application of Dangote refinery would not mean well the country’s oil sector.
They emphasised that the plan to monopolise the oil sector is a recipe for disaster in the country.
Dangote refinery in its originating summon dated September 6, 2024, had sued Nigeria Midstream and Downstream Petroleum Regulatory Authority and Nigeria National Petroleum Corporation Limited, AYM Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited as 1st to 7th defendants respectively.
The refinery had prayed the court to declare that NMDPRA violated Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing licenses for the importation of petroleum products.
It stated that such licenses should only be issued in circumstances where there is a petroleum product shortfall.
It also urged the court to declare that NMDPRA is in violation of its statutory responsibilities under the PIA for not encouraging local refineries such as the company.
Shafa, A. A. Rano, and Matrix Petroleum, however, responded that Dangote refinery does not produce adequate petroleum products for the daily consumption of Nigerians.
They noted that Dangote refinery has not placed anything before the court to prove the contrary.
They argued that they are well qualified and entitled to be issued an import licence by NMDPRA to import petroleum products in Nigeria within the meaning of Section 317(9) of the PIA.
They also noted that they are fully qualified for the issuance of the import licences issued to them by the 1st defendant, as they duly met all the legal requirements for the issuance of such import licences, before the same were issued to them.
“The import licences lawfully and validly issued to the defendants did not in any way whatsoever, cripple the plaintiff’s business or its refinery.
“The import licenses issued to the defendants by the 1st defendant are in line with the provisions of the Petroleum Industry Act, 2021, the Federal Competition and Consumer Protection Act, 2018, and other relevant laws,” they contended.
They contended that giving Dangote Refinery the power of monopoly in Nigeria’s petroleum industry would kill the competitive pricing of petroleum products in the country, noting that such would further hurt the country’s critically economy.
They also added that it would “unleash untold hardship on Nigerians, all of which constitute a recipe for disaster in the polity.”
“That in the event of any breakdown in or obstruction to the production chain of the plaintiff which stops it from producing Nigeria will be thrown into energy crises because it does not have the reserves that would last it for at least 30 days that it would need to order, pay for, freight and import refined products into tanks in Nigeria.
“That amidst the glaring absence of any credible and demonstrable proof that the plaintiff refines and supplies adequate petroleum products for the daily use/consumption of Nigerians, is a recipe for disaster in Nigeria’s energy sector.”
They further told the court that granting the reliefs sought by the plaintiff was a design to leave Nigeria and Nigerians at the mercy of the plaintiff with respect to the availability and cost of purchasing petroleum products in the country.
The presiding judge, Justice Inyang Ekwo fixed January 20, 2025, for a report of settlement or service.
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