The Dangote Petroleum Refinery and petroleum marketers are divided over the refinery’s decision to stop selling petrol to major marketers that import the product, deepening a dispute over competition and fuel supply in Nigeria’s downstream market.
The refinery says it took the step because some importers were allegedly blending its Euro-5 petrol with imported products of lower quality. It has therefore shifted sales towards independent marketers and other buyers that do not import petrol.
Some marketers, however, have rejected the restriction, describing it as an attempt to limit petrol imports. They have challenged the refinery to provide evidence that imported petrol entering Nigeria fails to meet the required quality standards.
The dispute has also become a regulatory and legal issue. Some affected marketers have sought to ensure that the Nigerian Midstream and Downstream Petroleum Regulatory Authority continues issuing import licences, arguing that imports may still be necessary to guarantee adequate supply when domestic production falls short.
The Independent Petroleum Marketers Association of Nigeria has taken a less confrontational position. Its representatives said independent marketers remain willing to buy petrol from whichever supplier offers competitive prices, including both domestic refiners and importers.
The disagreement comes as Nigeria’s expanding refining capacity is changing the structure of the petrol market. With the Dangote refinery increasing domestic supply, the balance between locally refined fuel and imported products is becoming an increasingly important issue for marketers, regulators and consumers.
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