The Dangote Petroleum Refinery has stopped selling Premium Motor Spirit (PMS), commonly known as petrol, to major petroleum marketers that import fuel into Nigeria, according to a source at the refinery. The decision, confirmed by an anonymous source, means the refinery will no longer supply petrol to companies that combine its products with imported fuel.
Refinery Cites Quality Concerns Over Fuel Blending
The source, who spoke on condition of anonymity because he was not authorised to speak publicly, said the refinery was concerned that its high-quality petrol could be mixed with imported products of lower quality. “We are not selling petrol to those who are importing, since they are trying to blend our high-quality products with their ultra-low-quality imported products,” the source said.
This move follows previous warnings from Dangote that it could stop doing business with fuel importers accused of mixing its Euro-5 petrol with imported products. The refinery has raised concerns that such practices could make it difficult to identify fuel supplied directly by the refinery after it has been blended or handled by third parties.
Refinery Prioritises Independent Marketers
Another source disclosed that the refinery is now prioritising independent petroleum marketers and other distributors that do not import petrol. “We are selling to independent marketers and others who are not importing,” the source stated.
The development is believed to be linked to recent legal action by some petroleum marketers seeking to ensure that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) continues to issue import licences. The affected marketers are reportedly concerned that they could face supply difficulties if they are prevented from importing petrol while the Dangote refinery is unwilling to sell to them.
Marketers Oppose Restriction, Demand Evidence
Petroleum importers and marketers have, however, criticised the refinery's position, describing it as an attempt to restrict petrol imports into Nigeria. Some marketers argued that Dangote should provide evidence to support claims that imported petrol entering the Nigerian market fails to meet required quality standards.
One marketer said a supplier should not determine whether consumers can combine petrol purchased from different sources. Using motorists as an example, the marketer said a driver could buy petrol from a TotalEnergies filling station and later purchase more fuel from an MRS station when the tank is nearly empty. He argued that neither company could realistically prevent the consumer from mixing the two products in the vehicle's tank.
Another marketer maintained that the Federal Government must prioritise adequate petrol supply and consumer protection, arguing that imports may still be required whenever domestic production is insufficient.
Impact on Nigeria's Downstream Market
The dispute comes as Nigeria's downstream petroleum market adjusts to rising domestic refining capacity and changing relationships between local refiners, fuel importers and petroleum marketers. The refinery's decision could reshape how petrol is distributed across the country, potentially affecting supply chains for major marketers while boosting opportunities for independent operators.
