The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) says its members can only source Premium Motor Spirit (PMS) from the Dangote Petroleum Refinery, as the Nigerian National Petroleum Company Limited (NNPC)-owned refineries are not optimally producing petrol but naphtha.
DAPPMAN’s Executive Secretary, Olufemi Adewole, confirmed this in an interview, stating that members are ready to lift products from the Dangote refinery, which remains the only viable local source for petrol. He added that marketers would only consider importation if the product is unavailable locally. However, he noted that Dangote has yet to agree to bulk sales to their members.
Adewole explained that the revamped Port Harcourt and Warri refineries are producing naphtha, not PMS, hence marketers will not turn to them for supply.
“The NNPC refineries are not optimally producing petrol. Our members won’t go there for now. We are willing to buy from Dangote, but if that’s not possible, the Petroleum Industry Act permits us to import,” he said.
He called for increased domestic production of petrol, stressing that depot owners prefer to buy locally but are hampered by limited supply. According to him, Dangote’s selective supply model, which involves a few marketers and gantry delivery, does not suit depot owners who purchase 15–25 metric tonnes in bulk.
“If the Dangote portal is opened and members can load vessels, it becomes easier for us,” he said.
He further noted that DAPPMAN members have depots across coastal areas in Nigeria and are ready to buy PMS and diesel from Dangote, though it remains unclear if the refinery is ready to sell to them. Discussions are ongoing, and DAPPMAN wants fair pricing.
“We are in business and want the best price. We’ll import if Dangote doesn’t sell. It’s not our first choice, but we won’t lose money,” he added.
In November 2024, NNPC announced the Port Harcourt refinery had resumed operations with a 60,000 bpd capacity, functioning at 70 percent of its installed output. It was expected to produce 1.5 million litres of diesel, 2.1 million litres of low-pour fuel oil, and blend 1.4 million litres of PMS from naphtha daily. NNPC’s spokesperson, Olufemi Soneye, defended the refinery’s operations amid criticisms, stating that blending is a global practice used to meet fuel specifications.
Soneye also said the company was making progress on the new Port Harcourt refinery, which would commence operations soon.
However, in April, the Nigerian Midstream and Downstream Petroleum Regulatory Authority reported the Port Harcourt refinery was operating below 40 percent capacity, while the Warri refinery has remained shut since January 25, 2025, over safety issues. The managing directors of the three NNPC refineries were reportedly dismissed by the new board.
Soneye has not responded to inquiries on the latest developments.
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