Business & Finance

Dangote Refinery Stops Petrol Sales to Importers Amid Blending Concerns

By thisage

The Dangote Petroleum Refinery has halted the sale of Premium Motor Spirit (petrol) to major marketers that import petroleum products. An unnamed refinery official told our correspondent that Dangote would no longer supply petrol to marketers involved in importing, citing worries that its high‑quality fuel could be blended with imported grades of uncertain quality. The refinery said it would instead prioritize sales to members of the Independent Petroleum Marketers Association of Nigeria (IPMAN) and other marketers not known to be involved in petrol imports.

The decision has heightened tensions between the domestic refinery and petroleum importers, who fear supply challenges if they cannot import petrol while also being restricted from buying directly from Dangote. Some marketers have sought legal protection for their import activities, approaching the court for an order compelling the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue granting them import licences.

Dangote had previously threatened to stop doing business with fuel importers it accused of blending its Euro‑5 petrol with imported products. The refinery argues that such practices make it difficult for consumers and regulators to distinguish between products supplied directly by the refinery and those that have been blended or handled by third parties. “It is difficult to understand why we would invest heavily in producing high‑quality petroleum products for Nigerians, only for those products to be mixed with imported products of uncertain quality and the resulting product to be associated with the refinery,” the refinery stated last month.

Importers and petroleum marketers have rejected the restriction, describing it as an attempt to curb competition from imported petrol. One marketer, who requested anonymity, challenged the refinery to provide evidence that imported petrol entering Nigeria failed to meet the required quality standards. He compared the situation to motorists who buy petrol from different filling stations, arguing that a supplier cannot dictate whether a consumer mixes its product with fuel purchased from another supplier.

IPMAN National Vice Chairman Hamed Fashola said he could not confirm the extent of Dangote’s restriction but noted that the refinery appears selective in dealing with marketers involved in imports. He explained that independent marketers focus on obtaining petrol at competitive prices and can source products from both domestic refineries and importers.

IPMAN National Publicity Secretary Chinedu Ukadike said the Dangote refinery remains open for business with marketers and that independent marketers will continue to purchase and sell petrol while seeking products from suppliers offering competitive terms. He added that Dangote is best positioned to determine how to protect the quality of its products.

The dispute underscores the emerging tension between Nigeria’s push to expand domestic refining and the continued role of imports in maintaining supply and competition in the downstream market. The outcome could have implications for how petrol is sourced, distributed and priced as domestic refining capacity continues to grow.