A new clash has erupted in Nigeria’s downstream oil industry as depot owners and petroleum marketers contest a court suit filed by the Dangote Petroleum Refinery to halt petrol imports.
Depot owners threatened to fight back should such an attempt be made that will make their investments meaningless.
Likewise, IPMAN and PETROAN rejected the court suit, emphasizing that fuel importation is very necessary amid the deregulation of the market.
This latest development comes as a result of a suit filed against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) by the Dangote Refinery at the Federal High Court in Lagos demanding the cancellation of import licenses granted to some marketers.
The refinery claimed that the continuous imports contravened laid down rules and threatened its operations considering the fact that it has increased its production above capacity.
Nevertheless, the regulators and marketers assert that imports will remain necessary to supplement the local production and avoid any shortage of supplies.
Recently, six companies have been authorized to import around 720,000 metric tonnes of petrol.
The industry participants are concerned that the lawsuit might lead to instability in supply and cause a monopoly, calling on the government to keep the market competitive.
In his turn, Dangote believes that the local refining should be enough to stop fuel imports, whereas the marketers claim that market mechanisms should depend on efficiency and pricing, not legality.
Additionally, the President of Nigeria, Bola Tinubu, has justified the government policy of supporting the refinery, including the naira-for-crude mechanism, as being very important for the country’s energy security.
