The Depot and Petroleum Products Marketers Association of Nigeria has declared that its members can only source Premium Motor Spirit, popularly known as petrol, from the Dangote Petroleum Refinery, citing the inefficiency of Nigerian National Petroleum Company Limited refineries.
According to The PUNCH, DAPPMAN’s Executive Secretary, Olufemi Adewole, explained that the state-owned refineries in Port Harcourt and Warri are currently unable to optimally refine petrol and are only producing naphtha.
“Our members will not go to the NNPC refineries for now,” Adewole stated. “The Port Harcourt and Warri refineries are producing naphtha. But we are ready to work with Dangote Refinery — if the product is available and accessible.”
He noted that although the Dangote facility is capable of supplying petrol, there are concerns about its mode of operation. According to him, the refinery appears to be adopting a selective approach in its dealings with marketers, preferring gantry loading systems and choosing a few marketers for supply.
“Dangote refinery prefers to supply through gantries and work with selected marketers, but as depot owners, we purchase in bulk — usually between 15 to 25 metric tonnes. If the refinery’s portal is opened and we are allowed to load our vessels, it will ease operations for us,” he said.
Adewole reiterated that DAPPMAN members are not opposed to buying locally refined products but would consider importation as allowed under the Petroleum Industry Act (PIA) if sourcing from Dangote proves unfeasible.
“We are not eager to import, but if we cannot get PMS locally, we will import. The PIA permits it,” he emphasized. “If the price from importation is more competitive, Nigerians will benefit from cheaper products.”
He also stressed that depot owners are eager to partner with the Dangote Refinery on mutually beneficial terms.
“We are proud of the Dangote Refinery and want to support its operations, but we must ensure we’re not running at a loss. It’s business at the end of the day,” Adewole stated.
Meanwhile, the NNPCL has insisted that its Port Harcourt refinery, which resumed partial operations in late 2024 after years of rehabilitation, is operating at 70 percent of its capacity. The company said it is currently producing diesel, kerosene, and naphtha, which is blended into PMS with the help of components from Indorama Petrochemicals.
In contrast, an April 2025 report by the Nigerian Midstream and Downstream Petroleum Regulatory Authority indicated that the Port Harcourt refinery had been operating at below 40 percent capacity. The Warri refinery, on the other hand, has remained shut since January due to safety issues in its crude distillation unit.
The operational challenges have led DAPPMAN to question the availability and sustainability of relying solely on local refineries for PMS distribution.
“We have depots spread across Nigeria’s coastal regions and are ready to distribute products nationwide. The question is: is Dangote ready to sell to us on terms that make sense for both parties?” Adewole concluded.
