The Dangote Petroleum Refinery and Petrochemicals is considering restricting the sale of Premium Motor Spirit, PMS, to major oil marketers that continue to import petrol, amid concerns over product quality, blending and the integrity of its brand.
The proposed restriction could take effect as early as this week, subject to further consultations and possible intervention, according to sources familiar with the refinery’s position.
The development follows concerns that some marketers may be blending imported petrol with PMS purchased from Dangote Refinery before distributing the products to consumers.
The refinery is said to be concerned that such practices could make it difficult to determine the origin and quality of petrol sold in the market.
It also fears that products imported or blended outside its control could subsequently be associated with the Dangote brand.
“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 questions about quality-control procedures for imported petroleum products, particularly the availability of adequate laboratory facilities to independently test, verify and certify imported PMS before it enters the domestic market.
Another source said there should be a clear distinction between locally refined products and those imported or blended by third parties.
“There must be a clear distinction between products produced by the refinery and products imported or blended by third parties. Otherwise, any quality problem in the market can be wrongly attributed to the refinery,” the source said.
The development comes as Nigeria’s downstream petroleum sector undergoes a major transition from decades of reliance on imported refined products to increased domestic refining.
With a nameplate capacity of 700,000 barrels per day, Dangote Refinery has emerged as one of the country’s major suppliers of refined petroleum products, both domestically and internationally.
Its increasing output has also contributed to a rise in Nigeria’s petroleum-product exports.
However, continued petrol imports by some marketers have created tension over the future structure of the downstream market, with domestic refiners advocating greater reliance on locally produced petroleum products.
Industry sources said the proposed restriction could force major oil marketers to review their import programmes as domestic supplies increase.
A downstream operator said the issue was not simply about competition between imported and locally refined petrol but also concerned quality and transparency.
“The central issue is quality and transparency. Consumers should be able to know where the petrol they are buying came from, what specification it meets and whether it has been blended after leaving the refinery,” the operator said.
The proposed measure is expected to further intensify the debate over the place of petrol imports in Nigeria’s deregulated downstream petroleum market.
While imports remain permissible, domestic refiners have increasingly argued that imported products should only be used to address genuine supply shortages rather than compete with available local production.
Dangote Refinery has also expanded its international presence, with its aviation fuel gaining acceptance in foreign markets.
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