Dangote Refinery to ban fuel sales to petrol importers, marketers

The Dangote Petroleum Refinery and Petrochemicals has said it is considering restricting the sale of Premium Motor Spirit, PMS to major marketers that continue to import petrol into Nigeria, amid concerns over product quality, market transparency and the integrity of products supplied under the Dangote brand.

The proposed measure, which could take effect as early as this week, subject to further consultations and any last-minute intervention, reflects growing concerns over the continued entry of imported PMS into a market where substantial domestic refining capacity is now available.

Sources familiar with the refinery’s position said the immediate concern relates to the fact that some marketers are blending substandard imported PMS with products purchased from Dangote Refinery before distributing the blended product to the market.

The refinery is concerned that such practices could make it difficult to distinguish between products supplied directly by the refinery and products subsequently blended or handled by third parties.

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“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,” a source familiar with the refinery’s position said.

The refinery has also raised concerns about the lack of a standard laboratory and adequate quality-control infrastructure for imported petroleum products by the regulator, particularly the capacity to independently verify and certify the specifications of products entering the Nigerian market.

The concerns come as Nigeria’s downstream petroleum sector undergoes a structural transition from longstanding import dependence towards greater domestic refining.

With a capacity of 700,000 barrels per day, Dangote Petroleum Refinery has emerged as a major supplier of refined petroleum products to both the Nigerian and international markets, supplying products that meet internationally recognised quality specifications.

The United States Energy Information Administration recently identified the Dangote Refinery as a major factor behind the sharp increase in Nigeria’s seaborne petroleum product exports.

Nigeria’s seaborne petroleum product shipments averaged 561,000 barrels per day in the second quarter of 2026, compared with an annual average of 79,000 barrels per day in 2023.

Dangote Petroleum Refinery’s jet fuel has emerged as a preferred choice in the global market, including across the US and Europe, where the refinery has cemented its position as Europe’s largest external supplier of jet fuel for consecutive months, surpassing traditional exporters from the United States and the Middle East.

DAILY POST reports that Dangote Refinery had raised the alarm over a 43.3 percent rise in fuel imports, which it attributed to import licence approvals by the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

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