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Concerns over fuel quality prompt Dangote Refinery to limit sales to petrol importers

The Dangote Refinery is set to limit fuel sales to marketers importing petrol, citing quality issues.

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By NigerianNewsFeed NewsDesk Admin
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Concerns over fuel quality prompt Dangote Refinery to limit sales to petrol importers
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Dangote Petroleum Refinery and Petrochemicals has announced plans to restrict the sale of Premium Motor Spirit (PMS) to major marketers who continue to import petrol into Nigeria. This decision, which could be implemented as early as this week, arises from serious concerns regarding product quality, market transparency, and the integrity of products associated with the Dangote brand.

Sources familiar with the refinery's strategy have indicated that the immediate issue stems from reports that some marketers are blending substandard imported PMS with products sourced directly from the Dangote Refinery. This practice raises significant concerns about the ability to differentiate between high-quality products supplied by the refinery and those that have been mixed or handled by third parties.

A representative from the refinery expressed frustration over the situation, stating, "It is difficult to understand why we would invest heavily in producing high-quality petroleum products for Nigerians, only for those products to be mixed with imported products of uncertain quality and the resulting product to be associated with the refinery."

In addition to the blending issue, the Dangote Refinery has highlighted the lack of a standard laboratory and adequate quality-control measures for imported petroleum products. The refinery has called attention to the need for the Nigerian Midstream and Downstream Petroleum Regulatory Authority to enhance its capacity to independently verify and certify the specifications of products entering the market.

This move comes at a pivotal time for Nigeria's downstream petroleum sector, which is transitioning from a long-standing reliance on imports to greater domestic refining capabilities. With a refining capacity of 700,000 barrels per day, the Dangote Refinery has positioned itself as a key supplier of refined petroleum products, not only for Nigeria but also for international markets. The refinery's products have been noted for meeting internationally recognized quality specifications.

The United States Energy Information Administration recently recognized the Dangote Refinery as a significant contributor to the increase in Nigeria's seaborne petroleum product exports. In the second quarter of 2026, Nigeria's seaborne petroleum shipments averaged 561,000 barrels per day, a substantial rise from an average of 79,000 barrels per day in 2023.

Furthermore, the refinery's jet fuel has gained popularity in the global market, particularly in the US and Europe, where it has become the largest external supplier of jet fuel, surpassing traditional exporters from the US and the Middle East.

The Dangote Refinery has also expressed alarm over a 43.3 percent increase in fuel imports, which it attributes to approvals of import licenses by the Nigerian Midstream and Downstream Petroleum Regulatory Authority. This situation underscores the urgency for regulatory bodies to ensure product quality and safeguard the integrity of domestic refining efforts.

Sources

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