The Dangote Petroleum Refinery has ended the supply of Premium Motor Spirit, commonly called petrol, to major marketers who import petroleum products into Nigeria.
The PUNCH reported that an official of the refinery confirmed the development, explaining that petrol would no longer be sold to those who blend Dangote fuel with imported grades.
“We are not selling petrol to those who are importing, since they are trying to blend our high-quality products with their ultra-low-quality imported products,” the source said, pleading for anonymity because he was not permitted to speak with the press.
A second source said the refinery now prefers to sell its petrol to members of the Independent Petroleum Marketers Association of Nigeria and others who are not known for importing. “We are selling to independent marketers and others who are not importing,” he stated.
It was learnt that this development explains why some marketers approached the court for an order directing the Nigerian Midstream and Downstream Petroleum Regulatory Authority to keep granting them import licences.
The marketers reportedly feared being left stranded if they were unable to import fuel while the Dangote refinery had stopped selling petrol to them. The refinery had earlier threatened to end business with fuel importers, accusing them of blending its Euro-5 petrol grade with imported grades.
The refinery is said to be concerned that such practices could make it hard to tell apart products supplied directly by the plant from those later blended or handled by third parties.
“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,” the refinery said last month.
Reacting to the restriction, importers and petroleum marketers opposed the move, describing it as an attempt to block imports. They also challenged the refinery to provide evidence that imported petrol entering the Nigerian market falls below the required quality standard.
Some of the marketers, who asked not to be named, accused Dangote of trying to stop petrol importation. “We know what Dangote is trying to do. He is just trying to block imports,” one of them said. He argued that a company selling petrol cannot dictate whether a consumer should combine its product with fuel bought from another supplier.
Citing the example of motorists who buy petrol from different filling stations, the marketer said Dangote could not stop consumers from mixing products sourced from different suppliers.
“For example, when you buy petrol from a TotalEnergies station, and you go down the road, and your petrol is almost finished, you then buy from MRS. Can TotalEnergies say you should not mix its petrol with MRS petrol? No, it can’t. I don’t understand the game that the Dangote refinery is playing,” he stated.
Another marketer argued that the Federal Government has a responsibility to guarantee adequate petrol supply and protect consumers, insisting that imports remain necessary whenever domestic production drops.
Speaking on the issue, the National Vice Chairman of IPMAN, Hamed Fashola, said the Dangote refinery is selective about its buyers because not all major marketers import.
“I don’t know how far that is correct; Dangote now sells to only IPMAN. I think somehow the information I have is that Dangote is selective about it, say those that are involved in importing. I think it’s not everybody that is importing,” he said.
Clarifying IPMAN’s purchasing position amid market competition, Fashola noted that independent marketers operate flexibly to secure the most competitive pricing, sourcing supply indiscriminately from both local refineries and importers.
“We buy our product anywhere we feel it is cheap. Anywhere we see the product, we go for it, both Dangote and the importers. We always go for the best price,” Fashola stated.
Meanwhile, the National Publicity Secretary of IPMAN, Chinedu Ukadike, expressed the belief that the Dangote refinery is open to doing business with anyone.
Ukadike noted that independent marketers are ready to buy and sell petrol from all suppliers, stressing that they are not currently involved in importing the product.
He said he could not confirm whether importers truly blend Dangote’s petrol with imported petrol, but concluded that Dangote is in the best position to decide what to do to discourage blending.
“I believe that the Dangote refinery is open for business and that it will continue to sell to marketers. The issue of blending, I cannot say yes or no, because I’m not part of those who are importing. Independent marketers are not importing yet; we are just marketers who buy and sell.
“So, if there is any measure to discourage adulteration of petroleum products by Dangote, I think the refinery and its experts know best. They know the best way to deal with that. But our own is to continue to buy and sell to marketers. If there is a way to discourage adulteration of petroleum products, I won’t stop Dangote from doing so,” Ukadike added.
