Marketers suspend fresh petrol purchases as depot prices jump to N1,220

Petrol marketers have suspended fresh purchases of Premium Motor Spirit (PMS) as ex-depot prices at private depots in Lagos climbed to N1,220 per litre, following the suspension of fuel loading at the Dangote Petroleum Refinery.

The development has heightened uncertainty in the downstream market, with many filling stations delaying new orders amid concerns over whether pump prices will rise further or decline once the refinery resumes sales.

Oyewole Akanni, western zonal chairman of the Independent Petroleum Marketers Association of Nigeria (IPMAN), said the refinery halted PMS loading about four days ago without prior notice, forcing marketers to source products from private depots at significantly higher prices.

“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,” Akanni told the News Agency of Nigeria (NAN).

“Since 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 Dangote Refinery resumes sales or increase further. Only a few marketers are buying products for now because of the uncertainty.”

According to him, the cheapest ex-depot price at private depots in Lagos now ranges between N1,200 and N1,220 per litre, excluding transportation costs, while marketers who lifted products on Friday paid between N1,210 and N1,220 per litre.

He said marketers could still obtain products from NIPCO and Aiteo at around N1,200 per litre, but the volatility in depot prices has made it difficult to determine appropriate retail prices.

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

The disruption comes just weeks after Dangote Refinery reduced its ex-depot petrol price to N1,075 per litre on July 2, following a decline in global crude oil prices.

However, the renewed conflict involving the United States and Iran has driven international crude prices sharply higher, with Brent crude approaching $90 per barrel, increasing pressure on refined fuel prices.

Last week, Dangote Refinery also discontinued naira-denominated pricing for petrol, introducing a dollar-based pricing framework that fixed its ex-depot price at $0.779 per litre. At the prevailing official exchange rate of about N1,380.50 per dollar, the benchmark translates to roughly N1,075.61 per litre.

Akanni said the refinery did not explain the reason for suspending PMS sales, adding that four truckloads of petrol meant for his filling stations have remained stranded since loading stopped.

“I was supposed to have received four truckloads of PMS since 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,” he said.

He added that the disruption had also affected the Nigerian National Petroleum Company Limited (NNPC Ltd.), which sources petrol from the Dangote Refinery.

Despite the supply disruption, Akanni maintained that Nigeria was not facing a fuel scarcity, urging motorists to avoid panic buying.

“There is no fuel scarcity. Members of the public should not panic,” he said, although he warned that pump prices could increase if the current disruption persists.

Industry watchers said the resumption of loading at the Dangote Refinery will be closely monitored, as it is expected to determine the next direction of depot and retail petrol prices across the country.