Petrol hits N1,350 as Dangote, marketers’ feud deepens

The ongoing conflict between the Dangote Petroleum Refinery and marketers over the importation and pricing of Premium Motor Spirit (PMS), commonly known as petrol, has intensified recently. Dangote, the country's largest refinery, is considering imposing restrictions on supplies to major marketers who continue to import the product.

The proposed measure could be implemented as early as this week, following consultations and potential last-minute changes. The situation has arisen due to rising petrol prices and quality concerns in the market, with prices nearing N1,400 per litre. Sources close to the refinery have revealed that some marketers allegedly blend imported PMS with products sourced from Dangote before distributing them to consumers.

This alleged practice is causing concerns about the ability to determine the product's quality and origin. Dangote is particularly worried that such blending practices may undermine the results of its investment in producing high-quality petroleum products. The refinery also highlights its capacity to meet international standards and its increased participation in both domestic supply and exports.

Meanwhile, marketers argue that imports are crucial for maintaining adequate supply, promoting competition, and avoiding supply shortages, especially when domestic refineries face operational disruptions. The dispute is further complicated by the fluctuating petrol prices across different regions, with prices now reaching N1,350 per litre in Lagos, nearing the N1,400 mark.