Dangote Refinery Names Marketers It Will No Longer Supply Petrol
- Dangote Refinery cut off six major oil marketers from buying its petrol after they received PMS import licences from Nigeria's petroleum regulator
- The six affected companies include Matrix Energy, A.A. Rano, AYM Shafa, NIPCO, Pinnacle Oil and Gas, and Bono Energy
- Imported petrol made up about 43% of total PMS supply in Nigeria in July, a figure the refinery cited as a key reason for the move
PAY ATTENTION: Mark Legit.ng as a preferred source, and our content will appear higher in your Google feed!
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Dangote Petroleum Refinery and Petrochemicals has cut off six major petroleum marketers from purchasing its locally refined Premium Motor Spirit (PMS), saying it will no longer sell petrol to companies that hold active import licences for the product.
The six companies are Matrix Energy, A.A. Rano, AYM Shafa, NIPCO, Pinnacle Oil and Gas, and Bono Energy.
Source: UGC
Why Dangote Took the Decision
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) granted the six marketers PMS import licences in May, covering a combined 720,000 metric tonnes of petrol, with individual allocations ranging from 60,000 to 150,000 tonnes.
Dangote Refinery pointed to market figures showing that imported petrol accounted for roughly 43% of total PMS supply in Nigeria in July, Petroleumprice.ng reports.
The refinery has long argued that continued imports eat into the market share of domestically refined fuel and could undermine the viability of local refining operations.
Beyond market competition, the refinery raised concerns about petrol blending. Industry sources said some worry imported PMS could be mixed with locally refined product before reaching consumers, making it very difficult to trace the source of any quality complaints.
The refinery also questioned whether Nigeria currently has enough laboratory capacity to independently test imported petrol and confirm it meets required specifications.
What the Decision Means for the Fuel Market
The move is likely to push the affected marketers to rely more heavily on imported cargoes to meet their supply needs. At the same time, marketers without import licences could benefit from greater access to Dangote-produced petrol.
Analysts say the decision could influence how petrol is distributed across storage depots, how much fuel is imported into the country, and whether regional fuel prices shift as a result.
Source: Getty Images
Punch reports that the refinery has previously said that if domestic sales continue to shrink due to imports, it may redirect more of its refined petrol to export markets, since holding large unsold volumes creates additional costs around storage, financing, and inventory management.
The development sets up a sharper divide in Nigeria's downstream petroleum sector between marketers sourcing fuel locally and those continuing to import, as domestic refining capacity keeps growing.
Imported petrol costs more than Dangote fuel
Earlier, Legit.ng reported that the estimated cost of importing petrol into Nigeria has climbed significantly above Dangote Petroleum Refinery's ex-depot price, highlighting the growing cost advantage of locally refined fuel.
The latest Energy Bulletin released by the Major Energies Marketers Association of Nigeria (MEMAN) showed that the estimated import parity price of Premium Motor Spirit (PMS), also known as petrol.
The figure is N170.19 per litre higher than Dangote Refinery's current gantry price of N1,195 per litre, indicating that imported petrol remains substantially more expensive than locally refined supplies.
Source: Legit.ng
