A fresh crisis is brewing in Nigeria’s downstream petroleum sector following the decision by Dangote Petroleum Refinery to stop selling petrol to major oil marketers importing petroleum products into the country.

The refinery’s latest position is that it will no longer supply petrol to marketers found to be blending its products with imported petrol.

The development has, however, triggered a backlash from marketers, who dismissed the allegation of product blending as unfounded and warned that the move could disrupt petrol supply and distribution across the country.

National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Mr. Billy Gillis-Harry, told Daily Sun that there was no justification for accusing marketers of blending petrol sourced from Dangote Refinery with imported products.

Gillis-Harry said the industry should instead encourage multiple sources of petroleum products to guarantee supply security and healthy competition.

“There is no reason why anyone would want to blend Dangote fuel with imported products. It is an unfounded allegation.

“Let Dangote continue to refine petroleum products while those in the business of importing fuel also continue to do so. All we want in the industry are multiple sources of petroleum products. That is the way we should go.

“We hope that the latest decision by Dangote does not cause disruption in the sales and distribution of products in the downstream sector,” he warned.

A senior official of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), who pleaded anonymity, also confirmed the development to Daily Sun, saying some of its members had received confirmation that the refinery had stopped selling petrol to importers.

“Yes, it is true that the Dangote Refinery has stopped sales of petrol to importers. Some of our members have confirmed the development,” the official said.

The latest development comes against the backdrop of the Federal Government’s continued approval of petrol importation by local marketers, despite sustained opposition from Dangote Refinery.

Two weeks ago, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) issued fresh licences for the importation of 830,000 metric tonnes, equivalent to about 1.1 billion litres of petrol, into Nigeria during the fourth quarter (Q4) of 2026.

According to an S&P report, the licences were issued as the government seeks to bolster domestic supply amid increasing pressure in the international fuel market.

“The Nigerian Midstream and Downstream Petroleum Regulatory Authority has issued 830,000 metric tons of gasoline import permits to six retail companies for Q4,” the report stated.

It said the companies and the licensed gasoline volumes matched the allocations made in June for the third quarter.

The beneficiaries were Matrix Energy, AA Rano, AYM Shafa, NIPCO, Pinnacle Oil and Bono Energy.

The approval has further intensified the disagreement between Dangote Refinery and the downstream regulator over the continued issuance of petrol import licences to local marketers.

On March 25, the NMDPRA eased petrol import restrictions by granting a new batch of licences to local marketers.

Two months later, Dangote Refinery instituted a fresh suit at the Federal High Court in Lagos challenging import licences issued or renewed by the NMDPRA for fuel marketers.

The dispute over petrol imports also suffered a setback for the regulator last month when a Federal High Court in Abuja ordered the NMDPRA to continue issuing and renewing petroleum products import licences to three major oil marketers.

Justice Inyang Ekwo, in a judgment delivered on September 28, 2026, ruled that the regulator’s refusal to grant or renew import licences for Matrix Energy, AA Rano and AYM Shafa was in “direct non-compliance” with the Petroleum Industry Act (PIA).

The judge specifically directed the NMDPRA to continue granting, issuing, extending, renewing or reissuing licences, permits and authorisations for midstream and downstream petroleum operations, particularly the importation of petroleum products, once the companies satisfy all statutory and regulatory requirements.

The judgment followed a suit filed in June by the three marketers challenging the NMDPRA’s refusal to regularly issue or renew their petroleum products import licences. (The Sun)

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