Petroleum marketers and fuel importers have opposed a reported plan by the Dangote Petroleum Refinery to stop supplying petrol to companies that continue to import the product into Nigeria.
The marketers described the proposed restriction as an attempt to discourage or prevent petrol imports, arguing that decisions on sourcing fuel should not be used to limit competition in the downstream market.
The disagreement follows reports that the refinery is considering restricting Premium Motor Spirit supplies to major marketers involved in petrol imports. The measure could reportedly be introduced this week, although discussions and possible government intervention may affect its implementation.
The refinery’s position is linked to concerns that some marketers may be mixing petrol purchased from Dangote with imported fuel before distributing it to consumers. According to the refinery, such practices could make it difficult to determine the source and quality of petrol sold in the market.
However, marketers have challenged the refinery to provide evidence that imported petrol entering Nigeria fails to meet the required quality standards.
One marketer argued that Dangote should not determine how consumers or businesses source and combine products from different suppliers, maintaining that the responsibility for regulating fuel quality rests with the appropriate government agencies.
Another marketer said the government should continue allowing imports whenever local production is insufficient to meet national demand. He warned that restricting imports could ultimately hurt consumers if domestic supply falls short.
The marketer also pointed to production challenges at the Dangote refinery, citing a report by the Nigerian Midstream and Downstream Petroleum Regulatory Authority which indicated that the facility experienced a period of reduced production in July.
According to the marketer, the refinery’s Residual Fluid Catalytic Cracking unit was reportedly unavailable for about a week, contributing to a decline in output. He argued that the government’s decision to permit additional imports was therefore aimed at preventing a shortage in the domestic market.
An importer separately questioned the refinery’s concerns about the quality of imported petrol, asking for evidence that such products were below Nigeria’s regulatory specifications.
Meanwhile, the Independent Petroleum Marketers Association of Nigeria said it would not oppose measures aimed at preventing the adulteration of petroleum products.
Its National Publicity Secretary, Chinedu Ukadike, said independent marketers were primarily focused on purchasing and selling petrol and were not currently engaged in importing the product.
He added that if Dangote Refinery had identified ways to prevent the mixing or adulteration of petroleum products, the company should be allowed to take appropriate steps.
The dispute comes shortly after Dangote Refinery raised concerns about the increasing volume of imported petrol entering the Nigerian market.
The refinery said imported petrol represented about 43 per cent of the country’s fuel supply in July, despite its ability to produce enough petrol to meet domestic requirements.
According to the refinery, the uncertainty created by imports has made it more difficult to plan production and manage inventories. It said excess petrol has consequently been exported when it cannot be absorbed by the local market.
Dangote Refinery has called for improved coordination and greater transparency in the downstream petroleum sector, arguing that policies supporting domestic refining would strengthen energy security, reduce foreign exchange demand and maximise the benefits of investments in local refining capacity.
