BREAKING: Dangote Refinery Stops Petrol Sales to Matrix, A.A. Rano, Other Licensed Importers

Dangote Petroleum Refinery has indicated that it will no longer sell Premium Motor Spirit (PMS), commonly known as petrol, to major oil marketers that hold valid licences to import the product.

Industry sources said the refinery’s decision is targeted at companies that continue to bring petrol into Nigeria despite the increasing availability of locally refined products.

According to figures cited by Dangote Refinery, imported petrol accounted for about 43 per cent of total PMS supply in July.

The refinery is concerned that the continued influx of imported petrol is reducing the market available to domestic refiners and could undermine investments in local refining capacity.

Under the new arrangement, Dangote Refinery is expected to prioritise marketers that do not have petrol import licences. Companies that continue to import PMS under the Federal Government’s approved import regime may therefore no longer be able to purchase petrol directly from the refinery.

Six companies were issued licences by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in May to import PMS. They are Matrix Energy, A.A. Rano, AYM Shafa, NIPCO, Pinnacle Oil and Gas, and Bono Energy.

The licences cover a combined allocation of about 720,000 metric tonnes, with individual allocations ranging from 60,000 to 150,000 metric tonnes.

Beyond market competition, Dangote Refinery has also raised concerns about the quality of imported petrol.

Sources said the refinery is worried that imported PMS of uncertain quality could potentially be blended with locally refined petrol before being distributed to filling stations.

Such a situation, the sources said, could make it difficult for consumers and regulators to distinguish between Dangote’s products and imported fuel. Any quality-related complaints could consequently affect the refinery’s reputation.

The refinery has also questioned whether NMDPRA currently has sufficient laboratory capacity to conduct comprehensive testing of imported petrol entering the Nigerian market.

Dangote Refinery’s latest position represents a further escalation of its longstanding concerns over continued petrol imports into Nigeria.

The refinery has previously warned that sustained imports could force it to export more of its refined products rather than incur the high cost of storing unsold petrol locally.

The development could lead to a more divided supply system in the Nigerian downstream oil market, with Dangote Refinery supplying mainly marketers that do not import petrol while licensed importers source a larger share of their products from overseas.

This could affect the availability of petrol at different depots, demand for imported cargoes and, potentially, pump prices across different parts of the country.

The Federal Government had approved petrol import licences as part of efforts to ensure adequate supply and maintain competition in the downstream petroleum sector.

Dangote Refinery, however, maintains that continued dependence on imported petrol could weaken the market for locally refined products and discourage further investment in domestic refining capacity.