Dangote Refinery may restrict PMS sales to petrol importers

By Onu Okorie

Dangote Petroleum Refinery and Petrochemicals may restrict the sale of Premium Motor Spirit PMS to major oil marketers that continue to import petrol into Nigeria, amid concerns over product quality, market transparency and the integrity of petroleum products sold under the Dangote brand.
The proposed measure could take effect as early as this week, subject to further consultations and any last-minute intervention, according to sources familiar with the refinery’s position.
The development comes against the backdrop of Nigeria’s ongoing transition from dependence on imported refined petroleum products to increased reliance on locally refined products.
Sources said the refinery’s immediate concern centres on allegations that some marketers blend imported PMS with products purchased from the Dangote refinery before distributing the mixture to consumers.
According to the sources, such practices could make it difficult for consumers and regulators to distinguish between products supplied directly by the refinery and those subsequently blended or otherwise handled by third parties.
“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,” a source familiar with the refinery’s position said.
The refinery has also expressed concerns about the country’s quality-control infrastructure for imported petroleum products, particularly the capacity to independently test, verify and certify the specifications of products entering the Nigerian market.
The concerns are emerging as the downstream petroleum sector undergoes a major structural shift following the expansion of domestic refining capacity.
With a stated capacity of 700,000 barrels per day, the Dangote Petroleum Refinery has become a major supplier of refined petroleum products to the Nigerian and international markets. Its products are marketed as meeting internationally recognised quality specifications.
The refinery’s growing contribution to regional and international petroleum markets has also attracted attention from global energy analysts.
The United States Energy Information Administration recently identified the Dangote refinery as a major factor behind the sharp increase in Nigeria’s seaborne petroleum product exports.
Nigeria’s seaborne petroleum product shipments averaged 561,000 barrels per day in the second quarter of 2026, compared with an annual average of 79,000 barrels per day in 2023, according to the agency.
Beyond petrol, the refinery’s aviation fuel has also gained ground in international markets. Dangote-produced jet fuel has reportedly become a preferred supply option in markets in the United States and Europe.
The refinery has, in recent months, strengthened its position as a major external supplier of jet fuel to Europe, competing with established exporters from the United States and the Middle East.
The proposed restriction on PMS sales, if implemented, could further reshape relationships between domestic refiners and petroleum marketers, while potentially intensifying debate over the role of imported petrol in Nigeria’s deregulated downstream market.
It could also place greater pressure on regulators and industry stakeholders to strengthen independent testing and quality-assurance mechanisms for petroleum products entering the country.
As consultations continue, stakeholders will be watching closely to determine whether the proposed measure proceeds, is modified or is suspended following further engagement between the refinery, marketers and relevant government authorities..