Petroleum marketers across Nigeria have significantly reduced their purchases of Premium Motor Spirit (PMS), commonly known as petrol, as uncertainty over the Dangote Refinery's new pricing model creates fears of sudden price shifts. The slowdown has raised concerns about potential pump price increases, although the refinery insists that fuel loading continues uninterrupted.
Marketers delay purchases amid pricing uncertainty
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, explained that marketers are refraining from buying fresh stock due to unpredictable market dynamics. He stated: "The issue is simple; marketers are not buying because they are trying to look at the market dynamics. Whatever we are using today is existing products in tank farms, which we are buying around ₦1,250 and ₦1,300." He added: "So everyone is just skeptical about loading products because when you load, you don't know the next price, if it is going to reduce or go higher."
Filling stations temporarily shut in South-West
In the South-West region, some filling stations have temporarily closed after exhausting their stock, as depot prices continue to fluctuate. IPMAN's Western Zone Chairman, Oyewole Akanni, reported that marketers are now sourcing petrol from private depots at between ₦1,200 and ₦1,220 per litre, excluding transportation costs. He said: "Many filling stations that have exhausted their stock are waiting to see whether prices will come down when the Dangote refinery resumes sales or increase further. Only a few marketers are buying products for now because of the uncertainty." However, Akanni urged the public not to panic, stating: "There is no fuel scarcity. Members of the public should not panic. Although there is a possibility of an increase in the pump price if the current situation persists."
Dangote Refinery denies halting loading
Despite the concerns raised by marketers, the Dangote Petroleum Refinery has dismissed reports that it suspended fuel loading. A spokesperson for the company described the reports as false, saying: "The refinery is loading. Anybody can go there to check. That's fake news to say we are not loading."
Disagreement over crude supply and dollar pricing
The broader issue stems from an ongoing dispute between the Federal Government and Dangote Refinery. Sources indicate that the refinery is dissatisfied with the government's continued issuance of petrol import licences to marketers despite its refining capacity. Additionally, the refinery reportedly receives a smaller portion of crude oil from the Nigerian National Petroleum Company Limited (NNPC) sold in naira. A government source explained: "So the facility is saying that if the government cannot increase the crude they are giving to him in naira, the new dollar pricing template is what he will do. So those are the two issues." This has pushed the refinery toward adopting a dollar-based pricing model for petroleum products.
FCCPC affirms naira as legal tender
The Federal Competition and Consumer Protection Commission (FCCPC) has reiterated that the Nigerian naira remains the only legal tender for domestic commercial transactions. The commission also questioned why recent drops in global crude oil prices have not translated into lower petrol prices for Nigerians. According to FCCPC, it will continue monitoring the downstream sector and take action if there is evidence of anti-competitive practices or consumer exploitation.
Outlook
For now, there is no official fuel scarcity, but the uncertainty over pricing means both marketers and motorists are watching developments closely. Experts warn that if the standoff between the government and Dangote Refinery continues, Nigerians could see fresh changes in pump prices in the weeks ahead.
