The Dangote Petroleum Refinery has stopped supplying Premium Motor Spirit to major marketers that import petroleum products into Nigeria, according to officials familiar with the decision.
A refinery source confirmed that petrol will no longer be sold to companies that blend Dangote’s product with imported grades. “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 official said, requesting anonymity because he was not authorised to speak publicly.
Another source said the refinery is now prioritising sales to members of the Independent Petroleum Marketers Association of Nigeria and other operators not involved in importation. “We are selling to independent marketers and others who are not importing,” the source stated.
Court Action and Earlier Warnings
The change has prompted some marketers to seek a court order directing the Nigerian Midstream and Downstream Petroleum Regulatory Authority to continue issuing import licences. They fear being left without supply if they cannot import fuel at the same time that the refinery refuses to sell to them.
Dangote had previously threatened to cut off business with fuel importers it accused of mixing its Euro-5 standard petrol with lower-grade imported product. The company argued that such blending makes it difficult to distinguish fuel supplied directly by the refinery from products later handled or mixed by third parties.
Last month the refinery stated: “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.”
Marketers Push Back
Importers and petroleum marketers have rejected the restriction, describing it as an attempt to limit imports. They challenged the refinery to provide evidence that imported petrol fails to meet required quality standards.
One marketer, who asked not to be named, said: “We know what Dangote is trying to do. He is just trying to block imports.” The same marketer argued that a seller cannot dictate how a buyer combines products from different sources, comparing the situation to motorists who fill their tanks at more than one filling station.
“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,” the marketer said.
Another operator maintained that the Federal Government has a duty to ensure adequate petrol supply and protect consumers, insisting that imports remain necessary whenever domestic production falls short.
Hamed Fashola, National Vice Chairman of IPMAN, noted that the refinery is selective in its sales because not every major marketer engages in importation.
The dispute highlights growing tension between Nigeria’s largest domestic refiner and traditional fuel importers as local production expands and competition for market share intensifies.
