The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has declared that its members can currently source Premium Motor Spirit (PMS) only from the Dangote Petroleum Refinery, as the refineries operated by the Nigerian National Petroleum Company Limited (NNPC) are still producing naphtha, not optimally refined petrol.
DAPPMAN Executive Secretary, Olufemi Adewole, told journalists that while marketers prefer to buy locally, their only viable source at present is the Dangote Refinery though the refinery has not yet opened its portal to bulk buyers, preferring to work with selected marketers and use gantry supply.
“Our members won’t lift from Port Harcourt or Warri refineries because they’re not yet producing PMS at full capacity. But we are ready and willing to work with Dangote Refinery if access is granted,” Adewole stated.
Key Challenges Identified
- NNPC Refineries’ Output: Despite claims by NNPC that the Port Harcourt Refinery is operating at 70% capacity, it is primarily producing diesel, low pour fuel oil, and naphtha, which is being blended into petrol using additives from Indorama Petrochemicals.
- Dangote Refinery’s Distribution Strategy: Marketers claim the refinery is limiting access by using a selective marketer model and gantry delivery, which is less efficient for bulk depot operators who move 15–25 metric tonnes at a time.
- Importation as Last Resort: DAPPMAN says importation remains an option under the Petroleum Industry Act (PIA), but would prefer local sourcing if pricing and logistics were competitive and transparent.
“We want to work with Dangote, but not at the cost of being shortchanged. We’re in business and we need fair pricing,” Adewole added.
Operational Realities of State Refineries
- Port Harcourt Refinery: Officially restarted in November 2024 but still operating below full refining capacity. A recent NMDPRA report shows it runs below 40% efficiency.
- Warri Refinery: Remains shut down since January 2025 due to a safety issue with its Crude Distillation Unit.
- Refinery Leadership: All three managing directors of the Port Harcourt, Warri, and Kaduna refineries were recently sacked by the NNPC’s new board due to poor performance and delays.
What This Means for the Market
- Petrol Supply Stability: Marketers are increasingly dependent on Dangote Refinery’s decisions, risking potential supply bottlenecks if access remains restricted.
- Refinery Trust Gap: Despite government assurances, marketers remain skeptical about NNPC refineries’ capacity to consistently produce PMS at required volumes.
- Policy Implication: The situation underscores the urgent need to liberalize access to local refineries, ensure transparent pricing, and push for full rehabilitation of state-owned facilities.
