The Dangote Petroleum Refinery and Petrochemicals is considering cutting off petrol supplies to major oil marketers that continue to import Premium Motor Spirit (PMS) into Nigeria.
The proposed move is reportedly linked to concerns over the quality of imported petrol and allegations that some marketers mix imported products with PMS purchased from the Dangote refinery before distributing them to consumers.
Sources familiar with the matter said the refinery could implement the measure as early as this week, although consultations and possible last-minute interventions may affect the decision.
Dangote is particularly concerned that blending its petrol with imported PMS could make it difficult to determine which products originated from the refinery and which were subsequently mixed or handled by third parties.
A senior official of the $20 billion Lekki-based refinery, who spoke anonymously because they were not authorised to comment publicly, said the company was worried about the potential impact on its reputation.
“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,” the official stated.
The refinery has also questioned the availability of adequate laboratory and quality-control facilities for imported petroleum products. According to the company, there are concerns about whether products brought into the country can be independently tested and certified to confirm that they meet required specifications.
The latest development comes shortly after Dangote raised concerns about increasing petrol imports, saying the trend was forcing it to export excess PMS despite having enough capacity to meet domestic demand.
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The refinery disclosed that imported PMS represented about 43 per cent of petrol supplied in Nigeria in July. It argued that the continued approval of import licences had created uncertainty over domestic demand, making it harder to plan production and manage inventories.
Dangote said it had maintained sufficient reserves to ensure uninterrupted supply to the Nigerian market. However, it warned that retaining large quantities of petrol indefinitely was becoming financially impractical when the volume of imported fuel entering the country remained uncertain.
“As a responsible energy provider, we have always endeavoured to keep adequate reserves to satisfy local demand at all times. However, in an environment where significant volumes of imported PMS continue to enter the market through licences issued by the regulator, and where there is limited visibility on future import volumes, it becomes commercially unsustainable to continue holding excess inventory indefinitely.”
The refinery said any surplus petrol that could not be sold locally would have to be exported to other regional and international markets.
The possible decision to stop supplying marketers who also import PMS signals a further escalation of Dangote’s concerns about petrol imports, shifting the dispute from the commercial impact of imported fuel to the conditions under which marketers can purchase and distribute the refinery’s products.