Dangote Moves To Stop Petrol Supply To Matrix, NIPCO, 4 Others

The management of Dangote Petroleum Refinery is considering ending petrol sales to six companies licensed to import Premium Motor Spirit (PMS), citing concerns over product quality and the protection of its brand.

The proposed move, according to sources familiar with the refinery’s position, is aimed at preventing locally refined petrol from being mixed with imported products whose quality may not be guaranteed before reaching filling stations.

The refinery is reportedly concerned that such blending could make it difficult for consumers and regulators to determine the origin of a product whenever quality complaints arise, potentially affecting the reputation of Dangote Petroleum Refinery.

A source familiar with the matter explained that the refinery had invested heavily in producing high-quality petroleum products and was therefore concerned about its products being mixed with imported fuel of uncertain standards.

Another source reportedly stressed the need for a clear distinction between petrol produced by the refinery and products imported or blended by third parties to prevent quality issues from being wrongly attributed to Dangote.

The development comes amid concerns over the continued importation of petrol despite increased domestic refining capacity. Figures cited by the refinery reportedly showed that imported petrol accounted for about 43 per cent of total petrol supply in July.

The refinery is expected to prioritise marketers without petrol import licences, while companies that continue to import products under the Federal Government-approved arrangement could lose access to Dangote’s petrol supplies.

The six companies currently licensed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority to import PMS are Matrix Energy, A.A. Rano, AYM Shafa, NIPCO, Pinnacle Oil and Gas, and Bono Energy.

The licences, issued in May, reportedly cover a combined allocation of 720,000 metric tonnes, with individual companies receiving allocations ranging from 60,000 to 150,000 tonnes.

The proposed decision by Dangote Refinery could further intensify competition between locally refined petrol and imported products as Nigeria continues to adjust to increased domestic refining capacity.