Dangote Refinery Stops Petrol Sales to Importing Marketers Over Blending Concerns

The Dangote Petroleum Refinery has stopped selling Premium Motor Spirit, commonly known as petrol, to major marketers that import petroleum products into Nigeria, citing concerns that its fuel could be blended with imported grades.

An official of the refinery confirmed the development, saying Dangote would no longer supply petrol to marketers involved in importing fuel. The source, who spoke anonymously because he was not authorised to speak publicly, said the refinery was concerned about its products being mixed with imported petrol.

Another source said the refinery was instead prioritising sales to independent petroleum marketers and other buyers that do not import petrol. The development has raised concerns among some major marketers who rely on imports to supplement their supplies.

The move is also linked to legal action by some fuel marketers, who reportedly sought an order requiring the Nigerian Midstream and Downstream Petroleum Regulatory Authority to continue issuing import licences. The marketers feared that restrictions on imports could leave them without adequate supply if they could no longer purchase petrol from the Dangote refinery.

Dangote had previously warned that it could stop doing business with fuel importers, accusing them of mixing its Euro-5 petrol with imported products. The refinery said such practices could make it difficult for consumers to distinguish between fuel supplied directly by Dangote and products later blended or handled by third parties.

Some petroleum marketers have rejected the refinery’s position, describing it as an attempt to restrict imports. They argued that Dangote should provide evidence that imported petrol entering Nigeria fails to meet required quality standards and said suppliers should not determine how consumers combine products bought from different stations.

The National Vice Chairman of the Independent Petroleum Marketers Association of Nigeria, Hamed Fashola, confirmed that Dangote appears to be selective about the marketers it supplies. He said independent marketers generally source petrol from whichever supplier offers the most competitive price, including both local refineries and importers.

IPMAN National Publicity Secretary Chinedu Ukadike said independent marketers were not currently importing petrol and remained willing to buy from available suppliers. He added that Dangote was in the best position to determine measures needed to prevent the blending or adulteration of its products while ensuring that marketers could continue accessing fuel.