The federal government has initiated fresh discussions with the Dangote Petroleum Refinery following widespread alarm among petroleum marketers over unstable petrol pricing and disruptions to fuel loading operations at the Lekki-based facility. Marketers have largely suspended large-scale purchases of Premium Motor Spirit (PMS) while awaiting clarity on the refinery's dollar-denominated pricing structure and the landed cost of newly imported fuel. The caution stems from fears that bulk purchases at current rates could result in significant losses if prices drop shortly afterward.
Marketers Rely on Old Stock Amid Uncertainty
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, confirmed that dealers are drawing down on existing inventory bought at between N1,250 and N1,300 per litre rather than lifting fresh supplies from depots. Ukadike attributed the reluctance to unresolved questions around pricing for new crude consignments and imported petroleum products, and called on the government to act quickly to restore confidence in the market, as reported by Punch.
The Western Zone Chairman of IPMAN, Oyewole Akanni, added that private depot owners have responded to the supply disruption by raising ex-depot prices to between N1,200 and N1,220 per litre, before factoring in transportation costs. Akanni confirmed that some filling stations have shut temporarily after exhausting their stock, but emphasized that Nigeria is not in a fuel scarcity situation. He cautioned that pump prices could climb if the current standoff is not resolved swiftly, and urged motorists not to panic-buy.
Dangote Refinery Denies Halt in Operations
The Dangote Petroleum Refinery pushed back against reports that it had halted operations, insisting that fuel loading at its facility remains ongoing and describing any suggestion of a shutdown as false. A senior government official confirmed that negotiations with the refinery are continuing, touching on wider issues affecting the downstream petroleum market. The refinery has reportedly expressed frustration over the government's continued issuance of import licences to other operators despite its domestic production capacity. It has also demanded that a greater volume of crude be supplied to it in naira, arguing that the bulk of its crude purchases are still settled in dollars.
Government Refuses to Cede Import Policy Control
The official indicated that the government remains committed to engagement but would not permit any single player in the sector to determine import policy or dominate the market. Separately, the Federal Competition and Consumer Protection Commission (FCCPC) restated that the naira is the only lawful currency for domestic commercial transactions in Nigeria. The commission also voiced concern that the recent decline in global crude oil prices had not resulted in any corresponding reduction in petrol prices for Nigerian consumers at the pump.
Petrol Prices Across Depots on July 17
According to data obtained from Petroleumprice.ng, petrol prices on Friday, July 17 varied across depots in the country. In Lagos depots: Pinnacle ranged from N1,085 to N1,190 (+N105); African Terminal from N1,090 to N1,189 (+N99); Sahara from N1,090 to N1,189 (+N99); Integrated from N1,090 to N1,189 (+N99); and Lister from N1,090 to N1,200 (+N110). In Warri depots: Rain Oil from N1,130 to N1,240 (+N110); Matrix from N1,120 to N1,220 (+N100); Parker from N1,125 to N1,220 (+N95); Optima from N1,117 to N1,235 (+N118); and A.Y.M Shafa from N1,125 to N1,230 (+N105). In Port Harcourt depots: Bulk Strategic from N1,136 to N1,225 (+N89); Masters from N1,137 to N1,230 (+N93); Matrix from N1,137 to N1,225 (+N88); and Liquid Bulk from N1,140 to N1,225 (+N85). In Calabar depots: Mainland from N1,155 to N1,220 (+N65) and Jenny from N1,155 to N1,225 (+N70).
Global Crude Oil Prices Surge Amid Geopolitical Tensions
Earlier, Legit.ng reported that global oil prices surged sharply after Donald Trump announced a naval blockade targeting Iran, raising fears of supply disruption across international energy markets. Brent crude, the global benchmark, rose more than 8% to trade above $103 per barrel on Monday, crossing the psychologically significant $100 threshold for the first time since last week, when prices briefly surged past $111 per barrel. US West Texas Intermediate (WTI) also climbed to $104.90 per barrel as of 05:25 AM (WAT), reflecting renewed risk sentiment among traders.
