Dangote Refinery cuts off six petrol marketers over import licences
By Aboki Forex —
Dangote Refinery has stopped selling petrol to six major oil marketers because they hold import licences from Nigeria's petroleum regulator. The affected companies are Matrix Energy, A.A. Rano, AYM Shafa, NIPCO, Pinnacle Oil and Gas, and Bono Energy.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) granted the six marketers PMS import licences in May. The combined allocation was 720,000 metric tonnes, with individual volumes ranging from 60,000 to 150,000 tonnes.
Imported petrol accounts for 43% of supply
Dangote Refinery pointed to market figures showing imported petrol made up about 43% of total PMS supply in Nigeria in July. 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.
The refinery also questioned whether Nigeria has enough laboratory capacity to independently test imported petrol and confirm it meets required specifications.
Blending concerns and what happens next
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 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.
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. Holding large unsold volumes creates additional costs around storage, financing, and inventory management.
The estimated cost of importing petrol into Nigeria has climbed significantly above Dangote Refinery's ex-depot price. The latest Energy Bulletin from the Major Energies Marketers Association of Nigeria (MEMAN) showed the import parity price of PMS is N170.19 per litre higher than Dangote's current gantry price of N1,195 per litre. Imported petrol remains substantially more expensive than locally refined supplies.
This 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.