Dangote Refinery Halts Lagos PMS Sales as Prices Surge

Dangote Refinery has suspended coastal sales of Premium Motor Spirit (PMS) to depot owners and importers in Lagos due to petrol prices surpassing ₦1,200 per litre in some depots. This decision is part of a strategy to redirect locally refined petrol to regions where imported supplies are less available.

The refinery's operations indicate that it accounted for approximately 43 percent of total petrol supplied in July, prompting the need to adjust production and distribution to meet domestic demand effectively. The refinery has raised concerns over the ongoing issuance of petroleum product import licenses despite its capacity to meet Nigeria's petrol requirements.

It has emphasized that uncertainty regarding the volume and timing of imported petrol complicates forecasting for locally refined products. To maintain supply, the refinery keeps substantial inventories, which incurs additional costs when competing imports are unpredictable.

The refinery has called for improved transparency regarding import licenses and product inflows, while Lagos-based fuel traders express concern over the suspension of PMS sales.