The Dangote Petroleum Refinery is considering suspending petrol supplies to six companies licensed to import Premium Motor Spirit (PMS) into Nigeria.
Sources familiar with the development said the proposed decision is aimed at protecting the quality of Dangote’s refined products and preventing its brand from being associated with fuel of uncertain quality.
According to the sources, Dangote is concerned that imported petrol could be mixed with its locally refined products before reaching filling stations. Such blending, they said, could make it difficult for consumers and regulators to determine the source of any quality-related problem.
One source explained that the refinery had invested heavily in producing high-quality petroleum products and did not want its products mixed with imported fuel and subsequently blamed for problems arising from such mixtures.
Another source stressed the need for a clear distinction between petrol refined by Dangote and products imported or blended by third parties, noting that any quality issue in the market could otherwise be wrongly linked to the refinery.
The refinery is also reportedly concerned about the continued importation of petrol despite increasing domestic refining capacity.
Figures cited by the refinery reportedly showed that imported petrol accounted for about 43 per cent of total petrol supply in July. Dangote believes the continued imports are reducing the market share available to locally refined products.
Under the reported plan, Dangote may prioritise marketers without petrol import licences, while companies that continue to import PMS under the Federal Government’s approved arrangement could lose access to supplies from the refinery.
The six companies currently licensed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to import PMS are Matrix Energy, A.A. Rano, AYM Shafa, NIPCO, Pinnacle Oil and Gas, and Bono Energy.
Their licences, issued in May, cover a combined allocation of 720,000 metric tonnes, with individual allocations ranging from 60,000 to 150,000 tonnes.
The proposed move could further reshape Nigeria’s downstream petroleum market as local refining expands and competition between domestic producers and fuel importers continues.
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