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Dangote Petroleum Refinery is set to stop supplying Premium Motor Spirit (PMS), popularly known as petrol, to major marketers holding valid import licences, in a move that could reshape Nigeria's downstream petroleum market.
Industry sources said the refinery plans to prioritise marketers that do not import petrol, while companies that continue to bring in imported PMS under the Federal Government's import regime may no longer receive supplies from the refinery.
The decision is said to be driven by Dangote Refinery's concerns over the continued importation of petrol despite increasing local refining capacity. According to the refinery, imported PMS accounted for about 43 per cent of Nigeria's petrol supply in July, reducing the market available for locally refined products.
The refinery is also reportedly worried that imported fuel of varying quality could be blended with its products before reaching filling stations, making it difficult for consumers and regulators to distinguish between locally refined and imported petrol. It fears such practices could damage its reputation if quality-related complaints arise.
Sources further disclosed that the refinery has raised concerns over whether the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has sufficient laboratory capacity to effectively test the quality of imported fuel.
The six companies currently licensed by the NMDPRA to import PMS are Matrix Energy, A.A. Rano, AYM Shafa, NIPCO, Pinnacle Oil and Gas, and Bono Energy. The licences, issued in May, cover a combined allocation of 720,000 metric tonnes of petrol.
The latest move represents an escalation of Dangote Refinery's long-standing opposition to continued fuel imports. The company has repeatedly argued that persistent importation discourages local refining investments and has warned that it could increase exports of refined products if the domestic market remains flooded with imported fuel.
While the Federal Government maintains that import licences are necessary to ensure adequate supply and promote competition, Dangote insists that reducing imports is essential to protect Nigeria's refining industry and maximise the benefits of local production.
