Africa’s largest oil refinery, the Dangote Petroleum Refinery in Lekki, has temporarily halted sales of Premium Motor Spirit (PMS, commonly known as petrol) and cancelled all existing supply contracts with customers across Nigeria, sending ripples through the downstream fuel market.
While the company has not issued an official public statement, a circular distributed to clients confirms the immediate suspension of new petrol deals and the termination of current agreements. The move follows weeks of intensified demand, routine maintenance on critical processing units, and a noticeable slowdown in crude oil deliveries.
Industry sources say crude inflows to the refinery averaged only about 290,000 barrels per day in January, down sharply from 440,000 barrels daily in December. This reduced supply has forced operators to scale back throughput on the crude distillation unit (CDU) — the refinery’s primary processing facility — while the residue fluid catalytic cracker (RFCC), a key gasoline-producing unit, is also offline for scheduled maintenance.
Refinery officials describe the pause as a standard operational adjustment rather than a major technical failure, aimed at managing inventory levels and ensuring internal balancing during the maintenance window. However, the timing — coming shortly after the festive season when fuel demand typically spikes — has caught marketers and motorists off guard.
The suspension also follows a recent price adjustment at the refinery gate. In early January, Dangote raised its ex-depot petrol price from N699 per litre to N799 per litre, pushing retail prices at stations such as MRS to around N839 per litre. The combination of higher pump prices and now restricted supply from the country’s largest domestic refiner has heightened fears of potential scarcity or further price increases in the coming weeks.
Despite the operational pause, Dangote and industry stakeholders insist that national fuel supply remains adequate, supported by existing inventories and imports. Still, the refinery’s outsized role in the local market means any adjustment in its output carries immediate implications for availability and pricing at filling stations nationwide.
The development underscores the challenges facing Nigeria’s long-awaited shift toward domestic refining dominance. While the 650,000-barrel-per-day facility has steadily increased petrol production since commissioning, consistent crude supply, efficient maintenance scheduling, and alignment with peak demand periods remain critical hurdles.
Marketers, motorists and policymakers will be watching closely for updates on the resumption timeline. Once the CDU and RFCC maintenance is complete and crude inflows stabilize, Dangote is expected to resume full petrol loading and contract renewals. Until then, the temporary suspension serves as a reminder that even Africa’s biggest refinery is not immune to the realities of supply-chain volatility and operational realities.
