Dollar Sale Row: Marketers Suspend Fuel Loading at Dangote Refinery as FG Moves to Resolve Pricing Dispute

BY FRONTLINE REPORTERS

The Nigerian downstream petroleum sector has been thrown into uncertainty as petroleum marketers temporarily suspended large-scale fuel loading from the Dangote Petroleum Refinery following the refinery’s decision to price petroleum products in United States dollars.

The development has sparked concerns over possible disruptions in fuel supply and a potential increase in petrol prices across the country, prompting calls for urgent intervention by the Federal Government.

Petroleum marketers disclosed that while fuel distribution has not completely stopped, many operators have adopted a cautious approach pending clarity on the refinery’s new pricing template and the expected landing costs of imported petroleum products.

However, the Dangote Petroleum Refinery has denied reports that it halted fuel loading operations, insisting that petroleum products are still being loaded at its Lekki-based facility.

Speaking on the development, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, explained that marketers are reluctant to make fresh purchases because of prevailing uncertainties in the market.

According to him, most petroleum products currently being sold are from existing stocks acquired at prices ranging between ₦1,250 and ₦1,300 per litre.

“The issue is simple. Marketers are watching market dynamics closely before committing to fresh purchases,” Ukadike stated.

He noted that uncertainty surrounding the pricing template for newly supplied crude oil and imported petroleum products has further complicated the situation.

“The new crude oil supplies that are coming into the market have no clear pricing template yet. Likewise, importers who have secured licences are expected to sell at about ₦1,350 per litre. Marketers are naturally being cautious,” he said.

Ukadike explained that marketers are unwilling to purchase large volumes of petrol without knowing whether prices will subsequently rise or fall.

“Everyone is sceptical about loading products because nobody knows what the next price regime will be. Consumers still expect marketers to sell at prevailing market prices even when acquisition costs fluctuate,” he added.

He urged the Federal Government to urgently intervene and establish a stable pricing framework for petroleum products.

“The Federal Government has to look inward and resolve this issue once and for all. The pricing template controversy should be addressed immediately,” Ukadike stressed.

Meanwhile, petroleum marketers in the South-West have confirmed that the uncertainty has compelled many operators to suspend fresh purchases, forcing some filling stations to temporarily shut down after exhausting their existing stock.

The Zonal Chairman of IPMAN, Western Zone, Oyewole Akanni, disclosed that the situation was triggered by the suspension of Premium Motor Spirit (PMS) loading activities at the Dangote refinery about four days ago.

According to Akanni, marketers have been forced to source products from private depots at significantly higher prices, with ex-depot prices in Lagos ranging from ₦1,200 to ₦1,220 per litre, excluding transportation costs.

“Marketers who bought products on Friday paid between ₦1,210 and ₦1,220 per litre. Since the Dangote refinery stopped selling PMS about four days ago, private depot owners have increased their prices,” he said.

He explained that many filling stations are waiting for the refinery to resume full sales operations before making fresh purchases.

“Many marketers are waiting to determine whether prices will fall or increase further when Dangote resumes sales. Only a few are buying products because of the uncertainty in the market,” Akanni stated.

Despite the situation, he assured Nigerians that there is currently no fuel scarcity and advised motorists against panic buying.

“There is no fuel scarcity. Members of the public should remain calm, although there is a possibility of an increase in pump prices if the current situation persists,” he said.

Akanni also alleged that the Dangote refinery neither provided prior notice nor offered explanations for the reported suspension of PMS sales to marketers.

“I was expecting four truckloads of PMS four days ago, but that has not happened because the trucks are at the refinery. The company is not even loading its own trucks. They are all parked there,” he claimed.

He further disclosed that the Nigerian National Petroleum Company Limited (NNPC Ltd.) was also affected because it sources petroleum products from the Dangote refinery.

According to him, private depots are now selling PMS for as much as ₦1,250 per litre, while products sourced from NIPCO and Aiteo are being sold at approximately ₦1,200 per litre.

“The major issue now is the continuous fluctuation in depot prices, which has created significant uncertainty in the market,” Akanni added.

Dangote Refinery Denies Suspension Claims

Reacting to the allegations, a spokesman for the Dangote Group dismissed claims that the refinery had stopped loading petroleum products, describing such reports as false and misleading.

“The refinery is loading. Anybody can go there and verify. It is fake news to say we are not loading,” the official stated.

The spokesman further noted that marketers importing petrol are currently struggling to compete with Dangote’s pricing, especially as petroleum prices in Lomé, Togo, continue to rise.

Federal Government Yet to Reach Agreement

The controversy comes amid ongoing discussions between the Federal Government and the Dangote Petroleum Refinery over issues that led to the refinery’s adoption of a dollar-based pricing model.

Industry observers warn that failure to quickly resolve the pricing dispute could prolong uncertainty in the downstream petroleum market and trigger another increase in the pump price of Premium Motor Spirit (petrol).

With marketers holding back on fresh purchases and consumers closely monitoring developments, stakeholders are urging the Federal Government to intervene decisively to stabilise petroleum pricing and prevent disruptions in fuel supply nationwide.

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