Uncertainty Over Pricing Template Disrupts Petrol Supply Chain as Refinery, Marketers Disagree on Loading Operations
Petroleum marketers have suspended large-scale fuel loading from the Dangote Petroleum Refinery amid uncertainty surrounding the refinery’s decision to adopt a dollar-based pricing template for Premium Motor Spirit (PMS), commonly known as petrol.
The development has prompted intervention by the Federal Government as concerns grow over the potential impact on fuel supply and pump prices across the country.
According to petroleum marketers, many operators have stopped lifting products from the refinery while awaiting clarity on the new pricing structure and the expected cost of newly imported petroleum products.
The uncertainty has also forced many marketers to delay fresh purchases to avoid potential losses should petrol prices fall after they have stocked up.
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, said marketers were exercising caution because of uncertainty in the downstream petroleum market.
He explained that many filling stations are currently selling products previously purchased at prices ranging between ₦1,250 and ₦1,300 per litre, making it difficult for marketers to predict future pricing.
Ukadike added that uncertainty over the pricing of new crude supplies and imported petroleum products has further complicated the situation.
He called on the Federal Government to urgently resolve the pricing dispute, warning that prolonged uncertainty could disrupt fuel distribution and increase pressure on consumers.
Similarly, the IPMAN Western Zone Chairman, Oyewole Akanni, disclosed that the suspension of petrol loading had forced many marketers to source products from private depots at higher prices.
According to him, ex-depot prices at private depots in Lagos currently range between ₦1,200 and ₦1,220 per litre, excluding transportation costs.
Akanni noted that some filling stations have temporarily closed after exhausting their existing stock, while others are waiting to see whether prices will rise or fall before making fresh purchases.
Despite the situation, he maintained that there is no fuel scarcity at the moment and advised Nigerians against panic buying.
However, the Dangote Petroleum Refinery denied reports that it had suspended loading operations.
A spokesperson for the refinery described the reports as false, insisting that fuel loading remains ongoing at the Lekki-based facility and urging the public to disregard contrary claims.
Meanwhile, a senior government official disclosed that discussions between the Federal Government and the refinery are continuing over key issues, including crude oil supply and the refinery’s decision to sell petroleum products in dollars.
According to the official, the refinery has expressed dissatisfaction over the continued issuance of petrol import licences to marketers despite its domestic refining capacity.
The refinery is also seeking an increase in the volume of crude supplied to it by the Nigerian National Petroleum Company Limited (NNPCL), particularly crude sold in naira rather than dollars.
The government official explained that while negotiations are ongoing, the Federal Government cannot prevent marketers from importing petroleum products if domestic supply becomes insufficient or if court rulings require regulators to continue issuing import licences.
The Federal Competition and Consumer Protection Commission (FCCPC) has also reiterated that the naira remains Nigeria’s only legal tender for domestic commercial transactions.
The commission further expressed concern that the recent decline in global crude oil prices has not been adequately reflected in retail petrol prices across the country.
The FCCPC assured Nigerians that it would continue monitoring developments in the downstream petroleum sector and take appropriate action where there is evidence of anti-competitive practices or consumer exploitation.
As negotiations continue, industry stakeholders are hopeful that an agreement will be reached to restore certainty in the market and prevent any disruption to fuel supply nationwide.
IBN NEWS will continue to monitor developments in Nigeria’s downstream petroleum sector and provide updates as negotiations between the Federal Government and the Dangote Petroleum Refinery progress.
