Marketers Suspend Fuel Loading Amid Dangote Dollar Pricing Dispute, Refinery Denies Halt in Operations

ABUJA, Nigeria — Petroleum marketers have suspended large-scale fuel loading from the Dangote Petroleum Refinery following the company’s decision to adopt a dollar-based pricing template for Premium Motor Spirit (PMS), popularly known as petrol, raising fresh concerns over fuel supply and pump prices across Nigeria.

The development has created uncertainty in the downstream petroleum sector, with marketers adopting a cautious approach as they await clarity on the refinery’s new pricing structure and the cost of newly imported petroleum products.

However, the Dangote Petroleum Refinery, located in Lekki, Lagos State, has denied reports that it has stopped loading fuel, insisting that operations at the facility are continuing as normal.

Marketers Slow Purchases Over Pricing Uncertainty

The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, said marketers were reluctant to purchase large volumes of petrol because they could not predict whether prices would rise or fall after loading.

According to him, many marketers are currently selling products purchased earlier at between N1,250 and N1,300 per litre, while uncertainty surrounds the pricing of new crude supplies and imported petrol.

Ukadike said marketers were wary of taking positions in the market without knowing the pricing template that would apply to fresh supplies.

“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.

He urged the Federal Government to urgently resolve the pricing dispute, warning that prolonged uncertainty could further disrupt fuel distribution.

South-West Marketers Report Reduced Loading

IPMAN’s Western Zone Chairman, Oyewole Akanni, also confirmed that many marketers had temporarily halted fresh purchases due to uncertainty surrounding petrol prices.

Speaking in Ibadan, Akanni said the reported suspension of PMS loading at the Dangote refinery had forced marketers to source products from private depots at higher prices.

According to him, the cheapest ex-depot prices at private depots in Lagos currently range between N1,200 and N1,220 per litre, excluding transportation costs.

He added that some marketers who purchased products recently paid between N1,210 and N1,220 per litre, while private depots have since raised prices to as much as N1,250 per litre.

Akanni said the uncertainty had resulted in the temporary closure of some filling stations after existing stock was exhausted.

Despite the situation, he maintained that Nigeria was not experiencing fuel scarcity, urging motorists to 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.

Dangote Refinery Rejects Claims of Loading Suspension

Responding to the allegations, a spokesperson for the Dangote Group dismissed claims that the refinery had suspended fuel loading, describing the reports as false.

The official insisted that loading activities were continuing at the refinery and challenged critics to verify the situation at the Lekki facility.

“The refinery is loading. Anybody can go there to check. That’s fake news to say we are not loading,” the spokesperson said.

The official also argued that marketers importing petrol were struggling to compete with the refinery due to rising fuel prices in neighbouring countries, particularly in Lomé, Togo.

FG, Dangote Yet to Resolve Pricing Dispute

The uncertainty comes as the Federal Government and the Dangote Petroleum Refinery continue negotiations over issues that prompted the refinery to introduce a dollar-based pricing template.

A senior government official familiar with the discussions said the disagreement extends beyond petrol pricing and includes crude oil supply arrangements and the continued issuance of petroleum import licences to marketers.

According to the official, the refinery has expressed dissatisfaction over what it considers inadequate crude oil allocation by the Nigerian National Petroleum Company Limited (NNPC Ltd.) and the limited proportion of crude supplied in naira.

The official explained that the refinery still purchases a significant share of its crude in dollars and believes increased naira-denominated crude allocations would reduce its foreign exchange exposure.

Government officials, however, insist that Nigeria must balance domestic refining needs with the country’s foreign exchange requirements, noting that crude oil exports remain a major source of dollar earnings.

The source added that discussions between both parties are ongoing to prevent further disruption to the downstream petroleum market.

FCCPC Insists Naira Remains Legal Tender

The Federal Competition and Consumer Protection Commission (FCCPC) has reiterated that the naira remains Nigeria’s only lawful currency for domestic commercial transactions.

Reacting to reports of a possible dollar-based pricing model for petroleum products, FCCPC Director of Corporate Affairs, Ondaje Ijagwu, said the commission’s position remained unchanged.

“The Nigerian naira is the legal tender in Nigeria and remains the lawful currency for domestic commercial transactions,” he said.

Ijagwu also expressed concern that recent declines in global crude oil prices had not translated into corresponding reductions in retail petrol prices.

According to him, the commission expects consumers to benefit from lower international crude prices where market conditions permit and warned that it would continue monitoring the sector for anti-competitive practices and consumer exploitation.

Court Battle Over Petrol Import Licences Deepens Uncertainty

Adding another layer to the dispute, three major oil marketers—Matrix Energy Group, AA Rano Nigeria and AYM Shafa Holdings—have reportedly approached the Federal High Court in Abuja to challenge any move to restrict the issuance or renewal of licences for petroleum product imports.

The marketers argued that they had invested heavily in storage, logistics and distribution infrastructure and should continue to participate in Nigeria’s downstream petroleum market.

The legal action could complicate the Federal Government’s efforts to prioritise domestic refining while maintaining competition and ensuring adequate fuel supply nationwide.

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A Lagos-based journalist with a passion for disseminating factual information and a deep appreciation for good music, good food, movies, and beautiful cars. He hopes to travel the world someday, documenting its beauty and diverse cultures through his storytelling.