Petroleum marketers have suspended large-scale purchases of petrol amid uncertainty surrounding the Dangote Petroleum Refinery’s reported adoption of a dollar-based pricing model, raising concerns over fuel supply and pump prices across Nigeria.
Industry operators said they had reduced fuel loading while awaiting clarity on the refinery’s new pricing template and the cost of newly imported petroleum products. The uncertainty has prompted marketers to avoid buying large volumes of petrol for fear that prices could fall shortly after purchase, leaving them with costly stock.
However, the Dangote Petroleum Refinery denied reports that it had suspended fuel loading, describing the claims as false and insisting that operations were continuing as normal.
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, said marketers were adopting a cautious approach because of uncertainty over future petrol prices.
According to him, existing stocks in tank farms were purchased at between ₦1,250 and ₦1,300 per litre, while uncertainty over the pricing of new crude supplies and imported petroleum products had made marketers reluctant to purchase additional volumes.
He said the situation had not completely halted fuel distribution but had significantly reduced the quantity of petrol being loaded by marketers. Ukadike urged the Federal Government to intervene and resolve the pricing dispute to restore confidence in the downstream petroleum market.
Similarly, IPMAN’s Western Zone Chairman, Oyewole Akanni, said uncertainty over petrol prices had led some filling stations to suspend fresh purchases and temporarily close after exhausting their existing stock.
Akanni attributed the situation to the reported suspension of Premium Motor Spirit (PMS) loading at the Dangote refinery, forcing marketers to source products from private depots at higher prices. He said ex-depot prices in Lagos currently ranged from ₦1,200 to ₦1,220 per litre, excluding transportation costs, with some depots charging as much as ₦1,250 per litre.
Despite the disruption, Akanni maintained that there was no fuel scarcity and advised motorists against panic buying, although he warned that pump prices could increase if the current situation persisted.
Responding to the claims, a spokesperson for the Dangote Group dismissed reports that the refinery had halted fuel loading, stating that operations were continuing and describing suggestions to the contrary as “fake news”. The spokesperson also argued that rising petrol prices in Lomé, Togo, had made it more difficult for fuel importers to compete with the refinery.
Meanwhile, discussions between the Federal Government and the Dangote Petroleum Refinery over the refinery’s decision to adopt a dollar-based pricing template remain unresolved.
A senior government official, who requested anonymity because of the sensitivity of the negotiations, said the disagreement extended beyond pricing and centred on two key issues: the continued issuance of import licences to petroleum marketers and the volume of crude oil supplied to the refinery, particularly the proportion sold in naira.
According to the official, the refinery is dissatisfied with the quantity of crude allocated to it by the Nigerian National Petroleum Company Limited (NNPCL) and argues that too little of its crude supply is purchased in naira, forcing it to rely heavily on dollar-denominated transactions.
The official said the government continued to engage with the refinery in an effort to resolve the dispute but stressed that it could not allow any single operator to dominate the domestic market by restricting fuel imports.
He added that the refinery’s location within a free trade zone gives it flexibility to conduct transactions in foreign currencies, although discussions with the government remain ongoing.
The Federal Competition and Consumer Protection Commission (FCCPC) reiterated that the naira remains Nigeria’s only legal tender for domestic commercial transactions.
FCCPC Director of Corporate Affairs, Ondaje Ijagwu, said the commission remained concerned that recent declines in global crude oil prices had not been reflected proportionately in retail petrol prices. He said the commission expected consumers to benefit from lower pump prices where market conditions justified such reductions and warned that enforcement action would be taken if there was evidence of anti-competitive practices or consumer exploitation.
The developments come amid a legal challenge by Matrix Energy Group, AA Rano Nigeria and AYM Shafa Holdings against the continued issuance and renewal of licences for petroleum product imports.
The companies argue that they have invested heavily in Nigeria’s petroleum distribution infrastructure and are seeking a court order requiring regulators to continue granting import licences.
