Petrol Marketers Vow To Fight Dangote Refinery Lawsuit on New Import License
- Petrol marketers under DAPPMAN have vowed to resist a lawsuit filed by Dangote Petroleum Refinery
- The suit challenges import permits granted to six companies, including NIPCO, AA Rano, Matrix Energy and Bono Energy
- Dangote Refinery argues that the new import licence violates the Petroleum Industry Act; marketers disagree
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Marketers said they are ready to oppose a suit filed by the Dangote Petroleum Refinery to stop the issuance of new petrol import licences in the country.
The legal battle followed recent approvals granted by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to six companies to import about 720,000 metric tonnes of Premium Motor Spirit (petrol) to support domestic supply.
Marketers approved to import PMS are: NIPCO, AA Rano, Matrix Energy, Shafa, Pinnacle Oil and Bono Energy.
Source: UGC
Dangote tackles import license
According to court papers, the refinery prayed the Federal High Court, Lagos, to declare the import permits null and void, citing it is illegal for continued fuel importation in violation of provisions of the Petroleum Industry Act when there is no supply shortage.
Reacting to the legal action, Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) on Sunday, March 17, said it will challenge any attempt to cancel the licenses granted to marketers, stressing the licenses are important to ensure a constant supply of fuels across Nigeria.
DAPPMAN said:
"The import licenses being challenged in the suit are not an administrative clemency; they are a legitimate operational framework through which Nigeria's supply chain of fuels operate. The licenses granted to marketers and other downstream operators represent a huge investment of over a billion dollars across storage depots, logistics, distribution, retail networks across the country.
"A suit aimed at nullifying these licenses will certainly not just impact on the businesses concerned but will introduce huge volatility across the entire downstream value chain. It is rather a bid by one firm to take monopoly of the entire downstream market, a position that has never and cannot be attained due to the presence of several other strong market participants that have also invested trillions of naira in making fuels readily available nationwide."
Source: Getty Images
The group reiterated that the fuel market in Nigeria is not designed for one player, and a suit aimed at bringing back a monopoly situation would likely lead to increased fuel prices.
DAPPMAN indicated that it would involve its lawyers and make appropriate representations to relevant authorities in connection with the suit, Leadership reports.
Independent Petroleum Marketers Association of Nigeria (IPMAN) also expressed objection to the suit, arguing that market-driven imports rather than legal injunction should be the basis.
Commenting on the situation, IPMAN Vice President Hammed Fashola said Dangote should concentrate on reasonable pricing rather than seeking an importation ban and warned of the possibility of further fueling the monopoly fear, Punch reports.
Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) likewise considered the suit unnecessary and an impediment that fuels fear and uncertainty.
Dangote replies to marketers over monopoly claims
Earlier, Legit.ng reported that Dangote Refinery has debunked claims by oil marketers that it cannot meet local fuel demand.
The refinery’s officials disclosed that the facility has enough fuel to meet local demands and for export.
According to reports, a consultant to the Dangote Refinery challenged the depot owners, IPMAN, and PETROAN to disclose the quantity of fuel the refinery has in stock before concluding on capacity.
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Source: Legit.ng
