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Dangote Petroleum Refinery has stopped selling petrol to major marketers that import petroleum products, citing concerns over the blending of its Euro-5 fuel with imported grades.
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Importers and some marketers say the restriction amounts to an attempt to limit competition and question claims that imported petrol fails to meet required quality standards.
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IPMAN says independent marketers remain willing to source petrol from both domestic refineries and importers based on price and availability.
October 6, (THEWILL) – The Dangote Petroleum Refinery has stopped selling Premium Motor Spirit (petrol) to major marketers that import petroleum products, citing concerns that its high-quality fuel could be blended with imported grades of uncertain quality.
An official of the refinery confirmed the development to our correspondent, saying Dangote would no longer supply petrol to marketers involved in importing the product.
“We are not selling petrol to those who are importing, since they are trying to blend our high-quality products with their ultra-low-quality imported products”, the source said, requesting anonymity because he was not authorised to speak publicly.
Another source said the refinery was instead prioritising sales to members of the Independent Petroleum Marketers Association of Nigeria (IPMAN) and other marketers not known to be involved in petrol imports.
“We are selling to independent marketers and others who are not importing”, the source added.
The decision has raised fresh tensions between the domestic refinery and petroleum importers, with marketers concerned they could face supply challenges if they cannot import petrol while also being restricted from buying directly from the Dangote refinery.
Importers Challenge Dangote’s Restriction
The development is believed to be behind moves by some petroleum marketers to seek legal protection for their import activities.
The marketers had approached the court for an order compelling the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue granting them import licences.
The concern, according to industry sources, is that marketers could be left without sufficient supply options if they cannot import petrol and are also unable to obtain products from the Dangote refinery.
Dangote had previously threatened to stop doing business with fuel importers it accused of blending its Euro-5 petrol with imported products.
The refinery has argued that such practices could make it difficult for consumers and regulators to distinguish between products supplied directly by the refinery and products that had subsequently been blended or handled by third parties.
“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 refinery stated last month.
Importers and petroleum marketers, however, have rejected the restriction, describing it as an attempt to prevent competition from imported petrol.
One marketer, who requested anonymity, challenged the refinery to provide evidence that imported petrol entering Nigeria failed to meet the required quality standards.
“We know what Dangote is trying to do. He is just trying to block imports”, the marketer noted.
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The marketer argued that a supplier should not be able to determine whether a consumer combines its product with fuel purchased from another supplier.
He compared the situation with motorists who buy petrol from different filling stations.
“For example, when you buy petrol from a TotalEnergies station, and you go down the road, and your petrol is almost finished, you then buy from MRS. Can TotalEnergies say you should not mix its petrol with MRS petrol? No, it can’t”, he said.
The marketer also argued that the Federal Government must ensure adequate petrol supply and protect consumers, especially when domestic production cannot meet demand.
IPMAN Backs Flexible Sourcing
The National Vice Chairman of IPMAN, Hamed Fashola, said he could not confirm the extent of Dangote’s restriction but acknowledged that the refinery appeared to be selective in dealing with marketers involved in imports.
“I don’t know how far that is correct; Dangote now sells to only IPMAN. I think somehow the information I have is that Dangote is selective about it, say those that are involved in importing. I think it’s not everybody that is importing”, Fashola stated.
He explained that independent marketers were primarily focused on obtaining petrol at competitive prices and could source products from both domestic refineries and importers.
“We buy our product anywhere we feel it is cheap. Anywhere we see the product, we go for it, both Dangote and the importers. We always go for the best price”, he added.
The position underscores the competitive dynamics emerging in Nigeria’s downstream petroleum market as domestic refining capacity expands while imports remain an alternative source of supply.
IPMAN National Publicity Secretary, Chinedu Ukadike, said he believed the Dangote refinery remained open to business with marketers, adding that independent marketers were prepared to buy from different suppliers.
Ukadike said independent marketers were not currently involved in importing petrol, but acknowledged that he could not independently confirm allegations that some importers were blending Dangote’s petrol with imported fuel.
“I believe that the Dangote refinery is open for business and that it will continue to sell to marketers”, he said.
On the blending issue, Ukadike said Dangote was in the best position to determine how to protect the quality of its products.
“If there is any measure to discourage adulteration of petroleum products by Dangote, I think the refinery and its experts know best. They know the best way to deal with that.”
He added that independent marketers would continue to purchase and sell petrol while seeking products from suppliers offering competitive terms.
The dispute highlights the emerging tension between Nigeria’s push to expand domestic refining and the continued role of imports in maintaining supply and competition in the downstream market.
While Dangote is seeking to protect the reputation and quality of its locally refined petrol, marketers argue that maintaining multiple sources of supply remains important for competition and product availability.
The outcome of the dispute could, therefore, have implications for how petrol is sourced, distributed and priced in Nigeria as domestic refining capacity continues to expand.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
