Dangote Refinery Cuts Petrol Supply to Six Marketers

Dangote Refinery has announced it will no longer supply Premium Motor Spirit (PMS) to six major petroleum marketers: Matrix, A.A. Rano, AYM Shafa, NIPCO, Pinnacle Oil and Gas, and Bono Energy.

This decision is based on the refinery's policy to cut off companies that hold active import licenses for petrol. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) had granted these marketers import licenses in May, allowing them to import a combined total of 720,000 metric tonnes of petrol.

The refinery expressed concerns that continued imports could undermine local refining operations and raised issues regarding petrol blending and the capacity to test imported petrol for quality. The decision may compel the affected marketers to rely more on imports, while those without import licenses could gain better access to Dangote-produced petrol.

Analysts suggest this move could significantly impact petrol distribution, import levels, and the dynamics of Nigeria's downstream petroleum sector.