Dangote Halts Petrol Sales to Importers

The Dangote Petroleum Refinery has stopped selling Premium Motor Spirit, popularly known as petrol, to major petroleum marketers that continue to import the product into Nigeria, citing concerns over the alleged blending of its petrol with imported grades.

An official of the refinery confirmed the development to The PUNCH, saying the decision followed concerns that some importers were combining petrol supplied by Dangote with imported products before distributing the blended fuel to the Nigerian market.

The refinery said it was unwilling to have its products associated with imported petrol whose quality it could not independently verify, particularly after investing heavily in the production of what it described as high-quality petroleum products.

The company had previously warned that blending could make it difficult for consumers and regulators to distinguish between petrol supplied directly by the refinery and products that had subsequently been mixed or handled by third parties.

The latest decision means that Dangote will prioritise petrol sales to independent marketers and other buyers that are not known to be importing petroleum products, rather than continuing to supply major marketers that participate in the import market.

The National Vice Chairman of the Independent Petroleum Marketers Association of Nigeria, Hamed Fashola, confirmed that Dangote had become selective about the marketers it supplied, although he noted that not all major marketers were involved in petrol imports.

Fashola said independent marketers would continue to source products from whichever supplier offered competitive prices, including both domestic refiners and importers.

IPMAN’s National Publicity Secretary, Chinedu Ukadike, also said independent marketers were not currently importing petrol themselves, although he stated that he could not independently confirm Dangote’s allegation that importers were blending its products with imported fuel.

The development has, however, drawn resistance from petroleum marketers and importers who have accused Dangote of attempting to restrict petrol imports and strengthen its position in the domestic market.

Some marketers have challenged the refinery to provide evidence that imported petrol entering Nigeria does not meet the required quality standards, while arguing that consumers and marketers should remain free to source products from different suppliers.

The dispute comes against the backdrop of a sharp increase in petrol imports despite the growth of domestic refining capacity, with industry data showing that imported petrol accounted for about 43.3 per cent of total PMS receipts in July 2026.

Data cited by the Centre for the Promotion of Private Enterprise showed that average petrol imports rose from 5.9 million litres per day in May to 18.1 million litres per day in June before reaching 19.7 million litres per day in July.

The surge has intensified the debate over whether Nigeria should continue granting petrol import permits as domestic refineries increase their output and seek a larger share of the local market.

The Federal Government’s position has also remained significant in the dispute, as the Nigerian Midstream and Downstream Petroleum Regulatory Authority approved petrol import permits covering about 830,000 metric tonnes for several marketers ahead of the fourth quarter of 2026.

The approved importers reportedly include Matrix Energy, A.A. Rano, AYM Shafa, NIPCO, Pinnacle Oil and Bono Energy, with the NMDPRA saying the permits were intended to prevent supply shortages during the end-of-year period.

The approvals have added another dimension to the dispute between Dangote and the petroleum regulator, particularly because the refinery has argued that petrol import licences should only be issued when domestic supply is insufficient to meet national demand.

Dangote Refinery has previously challenged the continued issuance of petrol import licences in court, arguing that such approvals could undermine domestic refining and conflict with provisions of the Petroleum Industry Act.

The refinery’s position has also received support from some industry analysts who argue that petrol imports should be tied to clearly established domestic supply gaps rather than operate alongside adequate local production.

However, petroleum marketers have maintained that imports remain necessary whenever domestic production cannot guarantee adequate supply, while also warning against policies that could give any single refinery excessive control over the downstream market.

The controversy comes at a time when locally refined petrol has gained a price advantage over imported fuel, with industry data showing Dangote’s gantry price at N1,265 per litre compared with an import-parity price above N1,309 per litre in early September.

The price difference has strengthened arguments from some local marketers that domestic refining should receive greater support, although the continued issuance of import permits shows that the authorities still consider imported supplies necessary for market stability.

The immediate effect of Dangote’s decision will depend on how affected marketers respond and whether the regulator takes any steps to address the dispute over imports, product quality and domestic supply.

For Nigerian motorists and other petrol consumers, the central issue remains whether the dispute between domestic refiners and importers will translate into changes in petrol availability, pump prices and competition across the downstream petroleum market.

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