Dangote Petroleum Refinery has finally stopped selling Premium Motor Spirit (petrol) to major marketers importing petroleum products into Nigeria.
This was confirmed to our correspondent by an officer of the refinery. The source said, “The refinery will no longer sell petrol to those mixing Dangote fuel with imported grades.” The PUNCH had reported that
“We are not selling petrol to those who are importing, they are trying to mix our high quality products with their ultra low quality imported products,” the source said on condition of anonymity since he was not allowed to talk to the press.
Another source told our correspondent that the refinery now wants to sell its petrol to members of the Independent Petroleum Marketers Association of Nigeria and those not known as importers. “We are selling to independent marketers and other people who are not importing, he said.
It was learnt that the development was responsible for certain marketers going to court to obtain an order that the Nigerian Midstream and Downstream Petroleum Regulatory Authority should continue to issue them import licences. Shop African Artwork
The marketers were afraid they will be stuck if they cannot import fuel when the Dangote refinery has ceased to sell petrol to them. Previously Dangote had threatened to stop doing business with fuel importers it accused of blending its Euro-5 petrol quality with imported grades.
It is concerned that these procedures are likely to complicate the differentiation between products supplied directly by the refinery and products that have been blended or handled by third parties after the fact.
“It is difficult to understand why we will invest so much to produce quality petroleum products for Nigerians only to mix them with imported products of unknown quality and the product will be associated with the refinery,” the refinery said last month. Shop African Art
In reaction, importers and petroleum marketers kicked against the restriction of petrol sales to marketers that import petrol, saying the move is an attempt to stop imports. The marketers also challenged the refinery to prove that imported petrol entering the Nigerian market is below the required quality standard.
Some merchants who spoke on condition of anonymity accused Dangote of trying to stop the importation of petrol. “We know what Dangote is trying to achieve. “He’s just trying to block imports,” stated one of the marketers. A company that sold petrol could not tell a consumer if they should mix its product with fuel bought from another provider, the marketer said.
The marketer cited the analogy of motorists buying petrol from several filling stations to show that Dangote could not stop consumers from mixing items acquired from different vendors.
“Like when you buy petrol at a TotalEnergies station, and you go down the road and your petrol is almost finished. You buy from MRS. TotalEnergies can claim you can’t blend its petrol with MRS petrol. No, it cannot. “I don’t understand the game Dangote refinery is playing,” he said.
Another marketer also said the federal government had a duty to maintain adequate petrol supply and protect consumers, adding imports were needed when domestic output fell.
Speaking, the National Vise Chairman of IPMAN, Hamed Fashola, said the Dangote refinery is selective on who it sells petrol to, noting not all large marketers import.
I don’t know how far it is true, Dangote currently sells to only IPMAN.” I suppose the information I have is that Dangote is picky about it, say those that are involved in importation. “I think it’s not everyone that is importing,” he remarked.
He said the market competition does not alter IPMAN’s stance on the purchase of fuel as independent marketers are flexible to get the best price, getting their supplies from local refineries or importers indiscriminately.
“We buy our product where we think it’s cheap. We go for the stuff anywhere we see it, Dangote and the importers. “We always try to get the best price,” Fashola said.
But, the National Publicity Secretary of the IPMAN, Chinedu Ukadike said he believes that the Dangote refinery is ready to do business with anybody.
Independent marketers are ready to buy and sell fuel from all suppliers, but are not involved in importing the commodity at the moment, Ukadike said.
He said he would not know if importers actually blend Dangote’s petrol with imported petrol but determined that Dangote was in the best position to determine whatever it could do to avoid blending.
“I believe the Dangote refinery is in business and will continue to sell to marketers. So whether it blends, I cannot say yes or no, because I am not part of those that are importing. “We’re just marketers who buy and sell. Independent marketers aren’t importing yet.
“So, if there is any measure to discourage adulteration of petroleum products by Dangote, I think the refinery and its experts know best. They know best for that. Ours is to keep buying and selling to marketers. “If there is a way of deterring adulteration of petroleum products, I will not stop Dangote from doing that,” Ukadike said.
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