Dangote Petroleum Refinery has announced plans to stop selling Premium Motor Spirit to major marketers that hold valid petrol import licences, signaling a major shift in the downstream fuel market. Industry sources said the decision targets companies still bringing in imported petrol despite rising local refining capacity.
According to figures cited by the refinery, imported PMS accounted for about 43 per cent of total petrol supply in July. Dangote argues that the high import volume is shrinking the market available to Nigerian refiners. As a result, the refinery said it will now give priority to marketers that do not hold import licences. Marketers that continue to import under the Federal Government’s approved regime may no longer be supplied by Dangote.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority licensed six companies in May to import PMS. They are Matrix Energy, A.A. Rano, AYM Shafa, NIPCO, Pinnacle Oil and Gas, and Bono Energy. Their combined allocation covers 720,000 metric tonnes, with individual allocations ranging between 60,000 and 150,000 tonnes.
Dangote’s move is partly driven by quality concerns. Sources said imported petrol of uncertain standard could be blended with locally refined PMS before it reaches filling stations. That, the refinery warned, would make it difficult for buyers and regulators to distinguish Dangote fuel from imported product and could damage its brand if quality complaints arise. The company also questioned whether NMDPRA has sufficient laboratory capacity to properly test imported petrol.
The decision marks a sharper turn in Dangote’s long-running argument against continued petrol imports. The company has previously warned that if imports persist, it may be forced to export more of its refined products rather than store large volumes of unsold PMS at high cost. For the market, analysts expect a split supply system to emerge, with Dangote selling mainly to non-importing marketers while licensed importers rely more on foreign cargoes.
The Federal Government issued the import licences to ensure supply security and maintain competition. Dangote’s position, however, is that continued imports undermine investment in local refining. The development is expected to affect depot availability, cargo demand, and pump prices across different parts of the country in the coming weeks.
