Fuel marketers have slowed bulk purchases of petrol from the Dangote Petroleum Refinery following uncertainty over the refinery’s decision to adopt a dollar-based pricing model, prompting the Federal Government to intensify efforts to resolve the dispute.
Industry operators said marketers are holding back on large-volume purchases while awaiting clarity on the refinery’s new pricing template and the cost of incoming imported petroleum products.
The uncertainty has raised concerns about possible supply disruptions, although the Dangote Refinery insists fuel loading is continuing at its Lekki facility.
National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, said marketers were taking a cautious approach because of uncertainty over future petrol prices.
“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.”
Ukadike explained that marketers are reluctant to stock large volumes because they cannot predict whether petrol prices will rise or fall after purchase.
He called on the Federal Government to urgently resolve the pricing dispute to restore confidence in the downstream petroleum market.
In the South-West, IPMAN’s Zonal Chairman, Oyewole Akanni, said many marketers had temporarily suspended fresh purchases following the reported halt in petrol loading from the refinery.
According to him, marketers have been forced to source products from private depots at higher prices, with ex-depot rates ranging between ₦1,200 and ₦1,220 per litre, excluding transportation costs.
Akanni said some filling stations had temporarily shut down after exhausting their stock, while others were waiting for greater price certainty before making new purchases.
Despite the situation, he maintained that Nigeria was not experiencing fuel scarcity and advised motorists against panic buying.
However, a spokesperson for the Dangote Group dismissed claims that the refinery had suspended fuel loading, describing the reports as false.
“The refinery is loading. Anybody can go there to check. That’s fake news to say we are not loading.”
Meanwhile, a senior government official familiar with ongoing discussions disclosed that negotiations between the Federal Government and the Dangote Refinery remain unresolved.
According to the official, the disagreement centres on two major issues: the continued issuance of petrol import licences to marketers and the volume of crude oil supplied to the refinery, particularly the quantity sold in naira.
The official said the refinery believes it is receiving insufficient crude supplies and wants a larger proportion of crude purchases denominated in naira instead of dollars.
He added that if no agreement is reached, the government could continue allowing fuel imports to ensure adequate domestic supply and prevent any single operator from dominating the market.
The official also noted that the refinery’s location within a Free Trade Zone allows it greater flexibility in determining the currency used for commercial transactions.
Reacting to reports that the refinery may price petroleum products in dollars, the Federal Competition and Consumer Protection Commission (FCCPC) reiterated that the naira remains Nigeria’s only legal tender for domestic commercial transactions.
FCCPC Director of Corporate Affairs, Ondaje Ijagwu, also expressed concern that recent declines in international crude oil prices have not been reflected in retail petrol prices.
According to the commission, consumers should benefit from lower global crude prices where market conditions justify such adjustments.
The government said discussions with the refinery are ongoing as authorities seek a resolution that ensures stable fuel supply, competitive pricing and a balanced downstream petroleum market.
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