Morganable business/markets
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, explained that marketers were being forced to tread carefully due to the unpredictability of petrol pricing
kaNo —
Uncertainty has gripped Nigeria’s downstream petroleum sector as marketers of petroleum products suspended large-scale fuel loading from the Dangote Petroleum Refinery amid concerns over the company’s reported decision to sell fuel in dollars.
The development, which emerged over the weekend, has raised fears of a potential disruption in fuel supply across parts of the country, although officials of the refinery have strongly denied claims that loading activities have been halted.
Marketers who spoke with Punch News on Sunday said many operators had deliberately slowed down or temporarily stopped lifting Premium Motor Spirit (petrol) from the Lekki-based refinery, citing a lack of clarity on the pricing template being adopted by the facility.
According to them, the situation has created widespread caution in the market, with operators unwilling to commit to large-volume purchases amid fluctuating prices and uncertainty over future costs.
Uncertainty Trails Market
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, explained that marketers were being forced to tread carefully due to the unpredictability of petrol pricing.
“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 N1,250 and N1,300,” Ukadike said in a telephone interview.
He added that the uncertainty had been compounded by expectations surrounding new crude supplies and incoming imported petroleum products, whose pricing structures remain unclear.
“The problem we are now facing is that this new crude oil that they are bringing-what will be the template? Also, those who have brought in petroleum products and are given licences are also estimated to place their price at N1,350, which marketers are also wary of,” he stated.
Ukadike noted that the inability to predict whether prices would rise or fall after purchase had discouraged marketers from loading large volumes of fuel.
“So everyone is just sceptical about loading products because when you load, you don’t know the next price, if it is going to reduce or go higher. You are still expected by consumers to sell at the prevailing price,” he said.
While he acknowledged that fuel distribution had not completely stopped, Ukadike said the volume of products being lifted had reduced significantly in recent days.
IPMAN Calls For Federal Government Intervention
He called on the Federal Government to urgently intervene and provide clarity on the pricing framework to stabilise the market.
“The Federal Government has to look inward and resolve this issue once and for all. This template issue should be resolved immediately,” he added.
Findings by the News Agency of Nigeria also indicated that the uncertainty had begun to affect retail operations, particularly in the South-West, where some filling stations have reportedly shut down temporarily due to difficulties in restocking.
According to Akanni, the situation began about four days ago and has forced marketers to rely on private depots, where prices are significantly higher.
He said the cheapest ex-depot price at private depots in Lagos currently ranges between N1,200 and N1,220 per litre, excluding transportation costs, while some marketers who bought products recently paid between N1,210 and N1,220 per litre.
“The non-availability of fuel at some filling stations and the closure of others are due to fluctuations in the price of lifting fuel from depots,” he said.
“Since the Dangote refinery stopped selling PMS about four days ago, private depot owners have increased their prices. 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.”
Akanni, however, insisted that the situation had not escalated into a nationwide fuel scarcity, urging motorists to remain calm and avoid panic buying.
“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,” he said.
“I was supposed to have received four truckloads of PMS four days ago, but that has not happened because the trucks are at the Dangote refinery, which has not been selling. The company is not even loading its own trucks. They are all parked there,” Akanni claimed.
According to him, private depots are now selling petrol for as much as N1,250 per litre, while some marketers are able to obtain products from NIPCO and Aiteo at around N1,200 per litre.
“The major issue now is the fluctuation in depot prices, which has created uncertainty in the market,” he said.
Dangote Refinery Dismisses Claims
However, the Dangote Group has dismissed claims of a halt in loading activities as false, insisting that operations at the refinery remain normal.
A spokesperson for the company, who declined to be named due to the sensitivity of the matter, described the reports as “fake news” allegedly being spread by some marketers.
“The refinery is loading. Anybody can go there to check. That’s fake news to say we are not loading,” the official said.
The spokesperson further suggested that some marketers importing petrol were struggling to compete with the refinery’s pricing, especially as prices in Lomé, Togo, have risen in recent weeks.
Despite the conflicting claims, industry observers warn that prolonged uncertainty over pricing and supply could destabilise the downstream market if not addressed promptly.
