Petroleum marketers have expressed concern over uncertainty in the downstream sector following reports that the Dangote Petroleum Refinery has adopted a dollar-based pricing system for the sale of Premium Motor Spirit (PMS), prompting many marketers to suspend large-scale fuel purchases.
According to marketers, the uncertainty surrounding the refinery’s new pricing structure has made it difficult to determine future petrol prices, leading many operators to delay fresh orders while awaiting clearer market direction and the arrival of imported fuel supplies.
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, said marketers are taking a cautious approach because they risk buying fuel at current prices only for pump prices to fall shortly afterwards.
He explained that many marketers are still selling existing stock purchased at previous depot prices and are uncertain about how new crude supplies and imported petroleum products will be priced.
The uncertainty has also reduced the volume of fuel being lifted from depots, although marketers insist there is currently no nationwide fuel shortage.
In the South-West, IPMAN officials confirmed that some filling stations have temporarily suspended operations after exhausting their stock, while others are waiting for greater clarity on pricing before making new purchases.
The Western Zone Chairman of IPMAN, Oyewole Akanni, said fluctuations in depot prices have forced marketers to source products from private depots at higher costs, warning that prolonged uncertainty could eventually push up pump prices.
He added that several fuel trucks scheduled to load products had remained idle as marketers monitored developments in the market.
However, the Dangote Petroleum Refinery denied reports that it had suspended fuel loading, maintaining that operations at the refinery were continuing as normal and dismissing claims of a shutdown as false.
Meanwhile, discussions between the Federal Government and the refinery over crude oil supply arrangements and the refinery’s decision to adopt dollar-based pricing are still ongoing.
Sources familiar with the negotiations said the refinery is seeking increased crude oil allocations in naira and has expressed concerns over the continued issuance of fuel import licences despite its domestic refining capacity.
The Federal Competition and Consumer Protection Commission (FCCPC) reiterated that the Nigerian naira remains the only legal tender for domestic commercial transactions and stated that it is monitoring developments in the petroleum sector.
The commission also noted that recent declines in global crude oil prices have not been adequately reflected in local petrol prices and warned that it would take action against any anti-competitive practices or consumer exploitation where necessary.
