The Dangote Petroleum Refinery has stopped selling Premium Motor Spirit, commonly known as petrol, to major marketers that import petroleum products into Nigeria, a refinery official confirmed on Monday, escalating a simmering dispute over fuel quality and import licensing.
What the refinery says
The official, who spoke on condition of anonymity because he was not authorised to speak to the press, said the refinery would no longer sell petrol to those blending 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.
Another source said the refinery now prefers to sell its petrol to members of the Independent Petroleum Marketers Association of Nigeria (IPMAN) and others not known for importing. "We are selling to independent marketers and others who are not importing," he said.
The refinery had earlier threatened to stop transacting with fuel importers, accusing them of blending its Euro-5 petrol grade with imported grades. It said last month that such practices could make it difficult to distinguish products supplied directly by the refinery from those subsequently blended or handled by third parties.
Importers push back
Importers and petroleum marketers opposed the restriction, describing it as an attempt to block petrol imports. The marketers challenged the refinery to provide evidence that imported petrol entering the Nigerian market is below the required quality standard, with one marketer saying the company was simply trying to block imports.
The development is believed to have informed a move by some marketers to seek a court order compelling the Nigerian Midstream and Downstream Petroleum Regulatory Authority to continue granting them petrol import licences. The marketers feared they could be left stranded if they could not import fuel while the refinery had restricted sales.
The industry view
Hamed Fashola, the National Vice Chairman of IPMAN, said the refinery is selective about who it sells petrol to, adding that not all major marketers import. Independent marketers say they operate flexibly, sourcing supply from both local refineries and importers to secure the most competitive pricing.
Sources: Punch: Dangote stops petrol sales to fuel importers | The Telegraph Nigeria: Dangote refinery stops petrol sales to fuel importers
What the refinery says
The official, who spoke on condition of anonymity because he was not authorised to speak to the press, said the refinery would no longer sell petrol to those blending 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.
Another source said the refinery now prefers to sell its petrol to members of the Independent Petroleum Marketers Association of Nigeria (IPMAN) and others not known for importing. "We are selling to independent marketers and others who are not importing," he said.
The refinery had earlier threatened to stop transacting with fuel importers, accusing them of blending its Euro-5 petrol grade with imported grades. It said last month that such practices could make it difficult to distinguish products supplied directly by the refinery from those subsequently blended or handled by third parties.
Importers push back
Importers and petroleum marketers opposed the restriction, describing it as an attempt to block petrol imports. The marketers challenged the refinery to provide evidence that imported petrol entering the Nigerian market is below the required quality standard, with one marketer saying the company was simply trying to block imports.
The development is believed to have informed a move by some marketers to seek a court order compelling the Nigerian Midstream and Downstream Petroleum Regulatory Authority to continue granting them petrol import licences. The marketers feared they could be left stranded if they could not import fuel while the refinery had restricted sales.
The industry view
Hamed Fashola, the National Vice Chairman of IPMAN, said the refinery is selective about who it sells petrol to, adding that not all major marketers import. Independent marketers say they operate flexibly, sourcing supply from both local refineries and importers to secure the most competitive pricing.
Sources: Punch: Dangote stops petrol sales to fuel importers | The Telegraph Nigeria: Dangote refinery stops petrol sales to fuel importers
