Dangote Stops Petrol Sales to Fuel Importers

The Dangote Petroleum Refinery has stopped selling Premium Motor Spirit, popularly known as petrol, to major petroleum marketers that import fuel into Nigeria.

An official of the refinery confirmed the development, saying Dangote would no longer supply marketers who import petrol and allegedly blend imported products with fuel produced by the refinery.

The refinery said the decision was driven by concerns that its locally produced fuel could be mixed with imported petrol of different quality, making it difficult to distinguish between products supplied by Dangote and those blended or handled by third parties.

The refinery had previously warned that such practices could affect the reputation of its products and make it difficult to trace the quality of fuel reaching consumers.

Dangote is now prioritising petrol sales to independent petroleum marketers and other marketers that are not known to be importing the product.

The development comes amid an ongoing dispute over petrol imports and the role of domestic refineries in Nigeria’s downstream petroleum market.

Some major marketers have opposed the restriction, arguing that the decision could amount to an attempt to prevent fuel imports and limit competition in the market.

One marketer questioned whether Dangote could prevent customers from combining products sourced from different suppliers, while insisting that the government should ensure adequate petrol supply and protect consumers from shortages.

The National Vice Chairman of the Independent Petroleum Marketers Association of Nigeria, Hamed Fashola, confirmed that Dangote has become selective in determining which marketers it supplies.

He said independent marketers remain focused on obtaining products from suppliers offering competitive prices, whether from domestic refineries or importers.

IPMAN’s National Publicity Secretary, Chinedu Ukadike, said independent marketers were not currently importing petrol but remained ready to buy from available suppliers.

The latest development follows earlier concerns raised by Dangote over the continued importation of petrol despite increased domestic refining capacity.

The refinery has argued that imported fuel could undermine investment in local refining, while marketers maintain that imports remain necessary to guarantee supply when domestic production is insufficient.

The dispute is expected to keep pressure on regulators and industry stakeholders as Nigeria seeks to balance domestic refining, fuel imports, competition and adequate supply to consumers.