Dangote Refinery Stops Petrol Sales To Major Importers Over Alleged Fuel Blending

The Dangote Petroleum Refinery has reportedly stopped supplying Premium Motor Spirit (PMS), commonly known as petrol, to major marketers involved in importing the product into Nigeria.

A refinery official confirmed the development, attributing the decision to concerns that some importers were allegedly mixing petrol supplied by the refinery with imported products of lower quality.

According to Bush Radio Academy, refinery sources said the company was concerned that such blending could make it difficult to establish the origin and quality of petrol being sold in the Nigerian market.

The refinery had previously raised concerns over the alleged practice, arguing that it could undermine the reputation of its Euro-5 petrol by associating its products with imported fuel whose quality may be uncertain.

One refinery source said the company had decided to prioritise sales to independent petroleum marketers and other buyers who do not import petrol.

The development has reportedly raised concerns among some major marketers, who fear that restrictions on supplies could affect their ability to meet market demand.

Some marketers have also challenged the refinery to provide evidence that imported petrol entering the country fails to meet the required quality standards. They argued that the decision could amount to an attempt to restrict competition from imported products.

One marketer questioned how the refinery could prevent different petrol supplies from being mixed, pointing out that motorists can purchase fuel from different filling stations without suppliers being able to control what remains in their vehicle tanks.

Another marketer maintained that the Federal Government had a responsibility to ensure adequate fuel supply, arguing that imports would remain necessary whenever domestic production was insufficient to meet national demand.

The National Vice Chairman of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Hamed Fashola, said Dangote Refinery appeared to be selective in determining which marketers it supplied.

Fashola explained that independent marketers were primarily focused on obtaining products at competitive prices and could source petrol from both domestic refineries and importers depending on availability and cost.

“We buy our product anywhere we feel it is cheap,” he said, adding that marketers would continue to consider different sources based on prevailing market conditions.

Meanwhile, IPMAN National Publicity Secretary, Chinedu Ukadike, said Dangote Refinery remained open to business with marketers.

Ukadike said independent marketers were currently not importing petrol and were primarily purchasing and reselling products sourced from available suppliers.

He said he could not independently confirm claims that some importers were blending Dangote petrol with imported products but acknowledged that the refinery had the right to adopt measures it considered necessary to prevent adulteration.

Ukadike maintained that marketers would continue to purchase and sell petroleum products while leaving the refinery to determine the measures it considered appropriate for protecting the quality and integrity of its products.

The dispute comes amid legal concerns over the continued issuance of petrol import licences by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), with some marketers reportedly turning to the courts over the issue.

The development has further intensified the debate over the balance between domestic refining, petroleum imports, competition and the need to guarantee adequate fuel supplies across Nigeria.