Dangote Refinery May Halt Petrol Sales to Importers

Dangote Petroleum Refinery and Petrochemicals is contemplating stopping petrol sales to major marketers that continue to import petrol into Nigeria. This decision is driven by concerns regarding the quality of products and the blending of imported fuel with those supplied by the refinery.

The proposed measure could be enacted as early as this week, pending further consultations. A senior official from the $20 billion Lekki-based refinery expressed frustration over the blending of imported petrol with Dangote's products, which complicates product distinction.

The refinery has also criticized the lack of standard laboratories and quality-control infrastructure for imported petroleum products. Recently, Dangote noted that petrol imports accounted for approximately 43% of the market supply in July, creating uncertainty in domestic demand and complicating production planning.

The refinery maintains sufficient inventory to meet local demand but finds it commercially unsustainable to hold excess stocks amid unpredictable import volumes. Consequently, surplus petrol may need to be exported to other markets.