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Dangote Stops Petrol Sales To Fuel Importers - Business - Nairaland

Nairaland Forum › Nairaland General › Business › Dangote Stops Petrol Sales To Fuel Importers (8464 Views)

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Dangote Stops Petrol Sales To Fuel Importers by adenigga(op): 4:05am On Oct 06
The Dangote Petroleum Refinery has finally stopped the sale of Premium Motor Spirit (petrol) to major marketers importing petroleum products into Nigeria.

An official of the refinery confirmed this to our correspondent, saying the refinery would no longer sell petrol to those blending Dangote fuel with imported grades.

“We are not selling petrol to those who are importing, since they are trying to blend our high-quality products with their ultra-low-quality imported products,” the source said, pleading for anonymity because he was not permitted to speak with the press.

Another source told our correspondent that the refinery now prefers to sell its petrol to members of the Independent Petroleum Marketers Association of Nigeria and others not known for importing. “We are selling to independent marketers and others who are not importing,” he stated.

It was learnt that the development informed why some marketers went to court to get an order that the Nigerian Midstream and Downstream Petroleum Regulatory Authority should continue to grant them import licences.

The marketers feared that they might be left stranded if they could not import fuel at a time when the Dangote refinery had halted petrol sales to them. Dangote had earlier threatened to stop transacting business with fuel importers, whom it accused of blending its Euro-5 petrol grade with imported grades.

It is concerned that such practices could make it difficult to distinguish between products supplied directly by the refinery and products subsequently blended or 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,” the refinery said last month.


Reacting, importers and petroleum marketers kicked against the restriction of petrol sales to marketers who import petrol, describing the move as an attempt to block imports. The marketers also challenged the refinery to provide evidence that imported petrol entering the Nigerian market is below the required quality standard.

The marketers, who preferred not to be mentioned, accused Dangote of trying to prevent the importation of petrol. “We know what Dangote is trying to do. He is just trying to block imports,” one of the marketers said. The marketer argued that a company that sells petrol could not dictate whether a consumer should combine its product with fuel purchased from another supplier.

Using the example of motorists buying petrol from different filling stations, the marketer said Dangote could not prevent consumers from combining products sourced from different suppliers.


“For example, when you buy petrol from a TotalEnergies station, and you go down the road, and your petrol is almost finished, you then buy from MRS. Can TotalEnergies say you should not mix its petrol with MRS petrol? No, it can’t. I don’t understand the game that the Dangote refinery is playing,” he stated.

Another marketer also argued that the Federal Government had a responsibility to ensure an adequate petrol supply and protect consumers, insisting that imports remain necessary when domestic production drops.

Speaking, the National Vice Chairman of the IPMAN, Hamed Fashola, stated that the Dangote refinery is selective about who it sells petrol to because not all major marketers import.


“I don’t know how far that is correct; Dangote now sells to only IPMAN. I think somehow the information I have is that Dangote is selective about it, say those that are involved in importing. I think it’s not everybody that is importing,” he said.

Clarifying IPMAN’s purchasing position amid market competition, Fashola noted that independent marketers operate flexibly to secure the most competitive pricing, sourcing supply indiscriminately from both local refineries and importers.

“We buy our product anywhere we feel it is cheap. Anywhere we see the product, we go for it, both Dangote and the importers. We always go for the best price,” Fashola stated.

Meanwhile, the National Publicity Secretary of the IPMAN, Chinedu Ukadike, expressed the belief that the Dangote refinery is open to doing business with anyone.

Ukadike noted that independent marketers are ready to buy and sell petrol from all suppliers, stressing that they were not currently involved in importing the product.

While saying he would not know if importers truly blend Dangote’s petrol with imported petrol, he concluded that Dangote is in the best position to determine whatever it can do to discourage blending.

“I believe that the Dangote refinery is open for business and that it will continue to sell to marketers. The issue of blending, I cannot say yes or no, because I’m not part of those who are importing. Independent marketers are not importing yet; we are just marketers who buy and sell.

“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 the best way to deal with that. But our own is to continue to buy and sell to marketers. If there is a way to discourage adulteration of petroleum products, I won’t stop Dangote from doing so,” Ukadike added.
Source: https://punchng.com/dangote-stops-petrol-sales-to-fuel-importers

Re: Dangote Stops Petrol Sales To Fuel Importers by zoedew: 4:53am On Oct 06
The unpatriotic importers of petrol wasting our scarce foreign currency do not deserve to be supported at all because they have no proof that local refinery production has not been sufficient to meet local demand such as would necessitate the import of petrol! Their conduct undermines the ability of local refineries to operate profitably. Many have obtained the licence to operate refineries locally but prefer to keep importing as it is less risky to trade in petrol than to refine crude oil into petrol locally.
Re: Dangote Stops Petrol Sales To Fuel Importers by eleko1: 5:36am On Oct 06
DANGOTE wahala is just too much .one day one trouble
Re: Dangote Stops Petrol Sales To Fuel Importers by saintopus(m): 6:39am On Oct 06
This fight will not end very soon.
Re: Dangote Stops Petrol Sales To Fuel Importers by cenaman(m): 6:52am On Oct 06
Very good development.
Re: Dangote Stops Petrol Sales To Fuel Importers by Gotocourt: 8:23am On Oct 06
Baba will start selling it cheaper, they'll run at a loss grin cheesy wink.

#Staywicked .
Re: Dangote Stops Petrol Sales To Fuel Importers by Zico5(m): 8:23am On Oct 06
Dangote is one of the major problems of this country. Since the federal government is directly benefitting from his exploitation of the masses, he believes he can do anyhow he wish. He wants to dictate every sector of the economy just for personal gain and not for the benefits of the masses. Tinubu won't stop him cos they are both on business agreements just to subject the masses to their whims and caprices.
Re: Dangote Stops Petrol Sales To Fuel Importers by ceejay80s(m): 8:25am On Oct 06
saintopus:
This fight will not end very soon.
The fight will break Nigeria eventually,
Then dangote can go dig crude from the north and do whatever he wishes with it
Re: Dangote Stops Petrol Sales To Fuel Importers by Moroccoguy: 8:26am On Oct 06
Those that bought Dangote IPO and still want subsidy to return need brain recheck.
Re: Dangote Stops Petrol Sales To Fuel Importers by ceejay80s(m): 8:26am On Oct 06
Gotocourt:
Baba will start selling it cheaper, they'll run at a loss grin cheesy wink.

#Staywicked .
Dangote will sell cheaper u say?
Even for ur dream e go cost pass real life,
He wants to be the only one selling to marketers, he wants them as slaves, monopoly,
He just dey find way to extort so e go fit pay una dividend of shares
Re: Dangote Stops Petrol Sales To Fuel Importers by TooMuchStuff: 8:27am On Oct 06
Did I give you the go ahead to implement this myopic business strategy, Mr Dangote ?

I am a SHAREHOLDER..... clock ⏰ that 😄
Re: Dangote Stops Petrol Sales To Fuel Importers by Eraddray(m): 8:27am On Oct 06
See strategy, stop sales to major fuel importer, u want to force them to buy from u and yet u want to sell at here high price even higher than what u sell to neighbouring countries,
Re: Dangote Stops Petrol Sales To Fuel Importers by ccollins(m): 8:27am On Oct 06
zoedew:
The unpatriotic importers of petrol wasting our scarce foreign currency do not deserve to be supported at all because they have no proof that local refinery production has not been sufficient to meet local demand such as would necessitate the import of petrol! Their conduct undermines the ability of local refineries to operate profitably. Many have obtained the licence to operate refineries locally but prefer to keep importing as it is less risky to trade in petrol than to refine crude oil into petrol locally.
but you did not know it’s very bad for dangote to hike prices of his refined fuel. The high prices is making life difficult for some Nigerians. Are u not aware of that fact
Re: Dangote Stops Petrol Sales To Fuel Importers by nairavsdollars(f): 8:28am On Oct 06
Is it true or shares money is being used to build refinery in Kenya?
Re: Dangote Stops Petrol Sales To Fuel Importers by Gotocourt: 8:28am On Oct 06
ceejay80s:
Dangote will sell cheaper u say?
Even for ur dream e go cost pass real life
It's not the first time he's doing so, it has made FP severally on NL. Name a depot selling cheaper than Dangote Refinery.
Re: Dangote Stops Petrol Sales To Fuel Importers by anonimi: 8:28am On Oct 06
eleko1:
DANGOTE wahala is just too much .one day one trouble
Should this wailing not be directed to the wicked balablu bulaba clueless town hall clown in Aso Rock?
The master strategist who is paying fuel subsidy illegally to import from their Malta blending plants, as he labours in vain to destroy Dangote.

Do you know why he has failed to crash petrol price below N185 promised, despite his illegal subsidy payment huh

anonimi:
NNPCL’s subsidy payment jump by 47.9% to N7.1trn in 2024

November 26, 2025

The Nigerian National Petroleum Company Limited (NNPCL) paid a total of N7.1 trillion as subsidy for premium motor spirit (PMS) in 2024, this sum represents a 47.9 percent increase from N4.8 trillion recorded in 2023.

This is despite the government’s announcement of subsidy removal in 2023.

The company explained that the amount, which it termed ‘energy security expense’ arises when there is differential between the exchange rate used to freeze the premium motor spirit ex-coastal price and the prevailing rate at the point of import settlement.

According to the report, government had instructed that NNPC Limited cannot sell its PMS above a certain regulated price. It added that the cost of petrol import is usually much higher that the regulated price.

https://businessday.ng/news/article/nnpcls-subsidy-payment-jump-by-47-9-to-n7-1trn-in-2024/?amp
@@@@@@@@@@@@@@@@@@@@@@



https://www.youtube.com/watch?v=Ekpid1bAMzc?si=TkD71U6QFI1Pzlw-



HenryThegreat1:
Aliko Dangote, the president of Dangote Industries Limited (DIL) has strongly refuted allegations by the Nigerian Midstream and Downstream Petroleum Regulatory Agency (NMDPRA), insisting its diesel is 80percent superior to those currently imported into Nigeria.

The richest man in Africa said this Saturday while showing members of the House of Reps the company’s facilities.

“Until late last year, diesel imports into Nigeria were up to 7,000 parts per million (ppm) of Sulphur which has been going on for many years. Our diesel is produced currently at significantly lower levels of Sulphur; as such, we find baseless the allegation that the reason for the reduction is linked to quality. What we are producing is 80 percent of what is being imported into the country,” Anthony Chiejine, the company’s spokesperson Dangote Industries Limited said.

Read also: Explainer: Separating fact from fiction in NMDPRA’s claims against Dangote refinery

“Another inaccurate assertion is that Medium Level Sulphur diesel is meant for off-road use. This is a completely false statement as this would have invariably meant that all the imports for the last 20 years have been damaging equipment.

“Thirdly, diesel imports for the high Sulphur grade have been at significantly higher prices until we started operation. If indeed high Sulphur diesel is sold at lower prices how come we never saw the lower prices until now?” the spokesperson said.

Read also: Dangote refinery not yet licensed to operate in Nigeria-NMDPRA

Related NewsInsecurity, oil theft: Nigerians demand results not endless rhetoricWrong diagnosis killing many patients in Nigerian hospitalsHigh electricity tariff crushing Nigerian public varsities

Dangote proved through a laboratory test before members of the House of Reps, led by Tajudeen Abbas how the sulphur content of its diesel is within acceptable range in Africa and better than some of diesel currently available in the country.

Dangote diesel currently contains 87.6 ppm

For instance, Dangote’s laboratory officials tested diesel products from two major retail outlets in Nigeria – TotalEnergies and Matrix – against the sample produced by Dangote Refinery.

The test was carried out using a ED-XRF Spectro Photometer, using the ASTM D4294 method.

The sample from TotalEnergies’s diesel showed 1,829ppm sulphur concentration. The sample from Matrix retail showed 2,2752.8682ppm sulphur concentration while the diesel sample from Dangote Refinery showed 87.6ppm sulphur concentration.

Targets 10ppm sulphur content August

“By the end of next week, we should be on 50ppm and by August, it should be down to 10ppm,” Dangote said.

BusinessDay’s findings showed the minimum global standard is 50ppm, while 200ppm is still acceptable in Africa till the end of the year.

On Thursday, July 18, Farouk Ahmed, chief executive officer of NMDPRA alleged Dangote refinery as well as some major refineries like Waltersmith refinery, produce between 650 to 1200 ppm.


https://businessday.ng/news/article/dangote-rejects-nmdpra-claims-says-sulphur-content-meets-african-standard/
Re: Dangote Stops Petrol Sales To Fuel Importers by ceejay80s(m): 8:29am On Oct 06
Eraddray:
See strategy, stop sales to major fuel importer, u want to force them to buy from u and yet u want to sell at here high price even higher than what u sell to neighbouring countries,
The guy is a crooked thief
Re: Dangote Stops Petrol Sales To Fuel Importers by Eriokanmi: 8:29am On Oct 06
This is good. A lot of saboteur in the system. Since they know how to outsmart him, they should keep importing. The man who appointed the marketers to deliberately kill dangote's business instesd of encouraging him to suceed, under the pretext of breaking the monopoly and by deliberately cutting local crude supply to dangote should advise the importers on what to do.

If you truly want to break the monopoly of dangote, you should have issued more refining licence, instead of deliberately attempting to destroy someone's business so that your own ahould grow.

Enemy of the masses,supported my the gullible mindsshocked
Re: Dangote Stops Petrol Sales To Fuel Importers by jeff1993: 8:30am On Oct 06
very Good .... Greedy set of individuals .... Try will mix different petrol and when people start complaining, they will lay the blame on Dangote
Re: Dangote Stops Petrol Sales To Fuel Importers by ceejay80s(m): 8:31am On Oct 06
Gotocourt:
It's not the first time he's doing so, it has made FP severally on NL. Name a depot selling cheaper than Dangote Refinery.
Unipetrol filling station
Re: Dangote Stops Petrol Sales To Fuel Importers by Gotocourt: 8:32am On Oct 06
Eraddray:
See strategy, stop sales to major fuel importer, u want to force them to buy from u and yet u want to sell at here high price even higher than what u sell to neighbouring countries,
Nigeria local petrol ⛽️ is the cheapest. Beer parlour talk.
Yet NCS is arresting petrol smugglers.
Re: Dangote Stops Petrol Sales To Fuel Importers by Blackman101: 8:32am On Oct 06
The cabal in the oil industry is trying to ground Dangote refinery at all cost. I feel sorry for the man.

He should built this refinery in some other country, this country don't value him
Re: Dangote Stops Petrol Sales To Fuel Importers by Honeydew3040: 8:33am On Oct 06
Nigerian matter self don tire me ooo
Re: Dangote Stops Petrol Sales To Fuel Importers by doncartel: 8:34am On Oct 06
Anything that will reduce fuel price in the filling station is highly welcome.
Re: Dangote Stops Petrol Sales To Fuel Importers by malali: 8:35am On Oct 06
Nigeria’s energy policy needs a reality check.

While governments around the world are taking emergency measures to cushion citizens and businesses from the Iran-driven energy shock, Nigeria appears far too comfortable watching the consequences pass straight through to consumers.

More than 100 countries have introduced measures to deal with the energy crisis. Governments have cut fuel taxes, released strategic reserves, introduced price brakes, eased transport costs and provided targeted assistance to industries and households. Austria introduced a petrol-price brake. Australia released petrol and diesel from reserves. Turkey reduced fuel taxation. The G7 has now agreed to release 100 million barrels of oil and diesel to help stabilize markets.


What is Nigeria doing?

Fuel prices feed directly into transport costs, food prices, logistics, manufacturing, construction and ultimately household purchasing power.

The answer doesn't necessarily have to be a return to the old petrol subsidy system.

There are other tools:

temporary fuel-tax relief, strategic reserves, targeted transport support, emergency diesel measures for critical industries, accelerated domestic crude supply, competition enforcement, and transparent rules governing refinery and import markets.


The objective should be simple:


Protect Nigerians from an extraordinary external shock without recreating the structural problems of the old subsidy regime.

What Nigerians should not have to accept is a government standing on the sidelines while petrol and diesel prices work their way through every single corner of the economy.

There is an energy-security problem, and Nigeria needs an energy-security response.


All the painful reforms implemented by Tinubu’s economic team, Cardoso, Edun and Oyedele, risk being undermined by one major problem: uncontrolled petrol and diesel prices.

You cannot fight inflation with monetary policy while allowing energy prices to become a massive inflationary shock.

The CBN is cutting interest rates just as fuel costs threaten to push inflation higher. That makes little sense to me.

Petrol and diesel don't just affect motorists. They affect transport, food, logistics, manufacturing, electricity and virtually every business in Nigeria.


You cannot put out an inflation fire with one hand while pouring petrol on it with the other.

If energy prices are allowed to spiral, what exactly were all these painful reforms supposed to achieve?
Re: Dangote Stops Petrol Sales To Fuel Importers by Klington: 8:37am On Oct 06
When we told them dangote building refinery was never a solution to Nigerians petrol crisis, apc blind followers called we patriotic Nigerians haters.
Re: Dangote Stops Petrol Sales To Fuel Importers by spiSeyi: 8:39am On Oct 06
Dangote is being stretched under hood and he is not finding it easy to monopolize the oil sector because unlike other industries the oil sector runs more like a cartel, and as it stands now most filling stations has refused to buy from Dangote despite the free delivery bcs most of this importers own a franchise of most of this down stream sector grin . I pity those who buys the Dangote shares their money will be used to float and subsidized Dangote refinery operations . grin grin
If I were Dangote I would not compete with this guys what I will do is to bring them in as a major stakeholders infact invest in some of their trucks I won't even get my own truck but the monopoly and greed in Dangote won't let him. Dangote is playing a lose game and the same thing awaits him in East Africa if he thinks he can monopolize the oil sector, he is already facing a bigger legal hurdles in Kenya as we speak grin
Re: Dangote Stops Petrol Sales To Fuel Importers by Iran2025: 8:41am On Oct 06
His decision. We have been consuming imported fuel for years. Na him Sabi. We need more hands to import more fuel to reduce the prices. Dangote never see anything.
Re: Dangote Stops Petrol Sales To Fuel Importers by emirate9: 8:43am On Oct 06
zoedew:
The unpatriotic importers of petrol wasting our scarce foreign currency do not deserve to be supported at all because they have no proof that local refinery production has not been sufficient to meet local demand such as would necessitate the import of petrol! Their conduct undermines the ability of local refineries to operate profitably. Many have obtained the licence to operate refineries locally but prefer to keep importing as it is less risky to trade in petrol than to refine crude oil into petrol locally.
With the emergence of Dangote refinery and the position of Tinubu govt on fuel import ... Is it the marketers we should blame or we just have an irresponsible govt under Tinubu ...

A govt that believes more import license is the best way to curb monopoly, using importation as competition to local refinery ..

Just imagine what Atiku is proposing Govt switch to subsidize local crude production, lower price from locals will make Importation unviable, many will want to Merge n build there own refinery to compete
Re: Dangote Stops Petrol Sales To Fuel Importers by nwirinedu(m): 8:43am On Oct 06
Supported , let them go and get their foreign fuel. If they were really into the business they d come together and build a refinery. The poor quality fuel we are seeing is attributed to these criminals. The blended fuel damages injectors, catalyst and increases running costs for transporters and businesses.

No to rent seekers, people must create real value instead of defrauding people.
Re: Dangote Stops Petrol Sales To Fuel Importers by mactoni91(m): 8:43am On Oct 06
Dangote is just having a field day in Nigeria...

I won't be surprised if he pumps out money for Tinubu reelection.
Re: Dangote Stops Petrol Sales To Fuel Importers by softtorce: 8:44am On Oct 06
How people make comment as senselessas this is beyond me.

So i should allow Lunatics purchase my product, adluterate it n sell the substandard product directly to the populace in competition against me.

Just as fake coke toothpaste palm oil are sold across the country
.


Zico5:
Dangote is one of the major problems of this country. Since the federal government is directly benefitting from his exploitation of the masses, he believes he can do anyhow he wish. He wants to dictate every sector of the economy just for personal gain and not for the benefits of the masses. Tinubu won't stop him cos they are both on business agreements just to subject the masses to their whims and caprices.
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