By Olumide Johnson
The Dangote Petroleum Refinery has stopped selling Premium Motor Spirit to major marketers importing petrol, intensifying an emerging dispute over domestic supply, imports and product blending.
DEVELOPMENT:
A refinery official confirmed that petrol sales would no longer be extended to marketers importing products and allegedly blending them with Dangote petrol.
“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.
Another source said: “We are selling to independent marketers and others who are not importing.”
The refinery had previously expressed concern about its products being mixed with imported grades. It said: “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.”
DATA:
The development has prompted some marketers to seek continued import licences, reflecting concern over supply options if domestic refinery supply is restricted. The material does not provide current import volumes or quantify Dangote’s share of the petrol market.
SIGNIFICANCE:
The dispute goes beyond commercial transactions. It raises questions about product quality, supply security, market competition and the relationship between domestic refining capacity and petroleum imports.
One marketer said: “We know what Dangote is trying to do. He is just trying to block imports.” He added: “For example, when you buy petrol from a TotalEnergies station, and you go down the road, and your petrol is almost finished, you then buy from MRS. Can TotalEnergies say you should not mix its petrol with MRS petrol? No, it can’t. I don’t understand the game that the Dangote refinery is playing.”
NEXT MOVE:
The market will be watching the response of importers, the Nigerian Midstream and Downstream Petroleum Regulatory Authority, marketers and independent retailers, particularly over import licences, supply availability and product-quality enforcement.
National Vice Chairman of IPMAN, Hamed Fashola, said: “I don’t know how far that is correct; Dangote now sells to only IPMAN. I think somehow the information I have is that Dangote is selective about it, say those that are involved in importing. I think it’s not everybody that is importing.”
He added: “We buy our product anywhere we feel it is cheap. Anywhere we see the product, we go for it, both Dangote and the importers. We always go for the best price.”
OUR LENS:
The deeper issue is whether Nigeria’s emerging domestic refining market can develop without restricting competitive sourcing. IPMAN National Publicity Secretary, Chinedu Ukadike, said: “I believe that the Dangote refinery is open for business and that it will continue to sell to marketers.”
On blending, he said: “So, if there is any measure to discourage adulteration of petroleum products by Dangote, I think the refinery and its experts know best. They know the best way to deal with that. But our own is to continue to buy and sell to marketers. If there is a way to discourage adulteration of petroleum products, I won’t stop Dangote from doing so.”
The outcome will test how quality protection, domestic refining and open-market competition can coexist.
Olumide Johnson is a journalist, reporting on energy, maritime, business, and developments shaping Nigeria’s economy.
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