Newsdrop News Business News Dangote halts petrol sales to fuel importers

Dangote halts petrol sales to fuel importers

The Dangote Petroleum Refinery has stopped selling Premium Motor Spirit, popularly known as petrol, to major marketers that import petroleum products into Nigeria.

A refinery official confirmed the development, saying the decision was driven by concerns that some marketers were blending Dangote’s petrol with imported products.

According to the official, the refinery does not want its Euro-5 petrol mixed with imported fuel of what it considers lower or uncertain quality, as this could make it difficult to distinguish Dangote’s products from blended fuel in the market.

Another source said the refinery was now prioritising sales to members of the Independent Petroleum Marketers Association of Nigeria (IPMAN) and other marketers not involved in petrol imports.

The development follows Dangote’s earlier threat to stop supplying importing marketers over alleged blending of its products with imported petrol. In September, the refinery was reported to have restricted sales to major marketers holding active import licences.

The move has, however, drawn opposition from some petroleum marketers, who accused Dangote of attempting to restrict fuel imports. They also challenged the refinery to provide evidence that imported petrol entering Nigeria fails to meet required quality standards.

IPMAN National Vice Chairman Hamed Fashola said independent marketers would continue to source petrol based on price and availability, whether from local refineries or importers.

“We buy our product anywhere we feel it is cheap,” Fashola said, stressing that marketers would go for the most competitive price.

IPMAN National Publicity Secretary Chinedu Ukadike said the association was not currently importing petrol but remained open to buying from different suppliers.

The dispute comes amid a wider legal battle over petrol imports. On September 28, the Federal High Court in Abuja ordered the Nigerian Midstream and Downstream Petroleum Regulatory Authority to continue issuing and renewing petrol import licences to Matrix Energy, A.A. Rano and AYM Shafa.

The ruling has intensified the debate over the place of imported petrol as domestic refineries, particularly the Dangote refinery, increase their contribution to Nigeria’s fuel supply.

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