Dangote Refinery May Limit Petrol Supplies Over Quality

Dangote Petroleum Refinery and Petrochemicals is considering restricting petrol supplies to major marketers that import Premium Motor Spirit (PMS) into Nigeria, due to concerns about product quality and market transparency. This potential measure could be implemented as early as this week, pending further consultations.

The refinery is worried that some marketers are blending imported petrol with its products, complicating the distinction between Dangote's offerings and those mixed with lower-quality imports. This practice threatens the integrity of the Dangote brand.

The refinery, which has a capacity of 700,000 barrels per day, is a significant supplier of refined products in Nigeria and has recently increased its presence in the international jet fuel market, surpassing traditional exporters. In November 2024, Dangote Refinery criticized an unnamed international trading company for allegedly blending substandard products to compete with its higher-quality output.

This situation underscores the tension between domestic refiners and marketers reliant on imports as Nigeria transitions to greater domestic refining capacity.