The Dangote Petroleum Refinery has suspended coastal sales of Premium Motor Spirit, also known as petrol, to depot owners and importers in Lagos.

Sources familiar with the refinery’s operations said the decision was part of a move to redirect petrol supplies to areas where imported products are less available.

According to one of the sources, the suspension was still in effect, while Lagos had continued to receive substantial volumes of imported petrol.

The development comes amid concerns at the refinery over the increasing volume of imported petrol entering the Nigerian market. Data available to the refinery indicated that imported PMS accounted for about 43 per cent of total petrol supplied into the country in July.

The high level of imports has reportedly made it more difficult for the refinery to forecast domestic demand and plan its production, storage and distribution.

The Dangote refinery has continued to hold significant petrol stocks to ensure steady supply to the domestic market. However, maintaining large inventories comes with high storage, logistics and financing costs, particularly when the refinery has limited information about the quantity of imported fuel expected to enter the market.

When locally refined petrol cannot be absorbed by the domestic market, the refinery may have to export the excess.

The refinery has maintained that its increased exports in recent months do not mean it lacks the capacity to meet Nigeria’s petrol needs. Rather, the company says exports provide an alternative market for products that cannot be sold locally.

Dangote Refinery has also raised concerns about the continued issuance of petrol import licences, arguing that greater transparency over licences and expected import volumes would help local refiners plan production and distribution more effectively.

For Lagos depot owners and petrol importers, the suspension means they will have limited access to Dangote’s coastal petrol supplies for now.