FG Opens Talks with Dangote Refinery as Marketers Halt Petrol Purchases Over Pricing Uncertainty

The federal government has opened direct discussions with Dangote Petroleum Refinery after petroleum marketers across the country suspended fresh fuel purchases due to unstable pricing and unresolved questions around dollar-denominated costs. The Independent Petroleum Marketers Association of Nigeria (IPMAN) confirmed that filling stations have stopped lifting new supplies and are drawing down on existing inventory bought at between N1,250 and N1,300 per litre.

Marketers Pull Back as Pricing Concerns Deepen

The National Publicity Secretary of IPMAN, Chinedu Ukadike, said dealers are reluctant to buy in bulk at current prices over fears that a price drop could result in significant losses. He attributed the caution to unresolved questions around pricing for new crude consignments and imported petroleum products, and called on the government to act quickly to restore market confidence.

The Western Zone Chairman of IPMAN, Oyewole Akanni, added that private depot owners had responded to the supply disruption by raising ex-depot prices to between N1,200 and N1,220 per litre from the previous rate of N1,170, before factoring in transportation costs. He confirmed that some filling stations had shut temporarily after exhausting their stock, but emphasised that Nigeria was not in a fuel scarcity situation. Akanni cautioned that pump prices could climb if the standoff is not resolved swiftly, and urged motorists not to panic-buy.

Dangote Refinery Denies Shutdown, Government Engages

The Dangote Petroleum Refinery pushed back against reports that it had halted operations, insisting that fuel loading at its facility remained ongoing and describing any suggestion of a shutdown as false. A senior government official confirmed that negotiations with the refinery were continuing, touching on wider issues affecting the downstream petroleum market.

The refinery has reportedly expressed frustration over the government's continued issuance of import licences to other operators despite its domestic production capacity. It has also demanded that a greater volume of crude be supplied to it in naira, arguing that the bulk of its crude purchases are still settled in dollars. The official indicated that the government remains committed to engagement but would not permit any single player in the sector to determine import policy or dominate the market.

FCCPC Warns on Dollar Pricing, Global Oil Prices Rise

Separately, the Federal Competition and Consumer Protection Commission (FCCPC) restated that the naira is the only lawful currency for domestic commercial transactions in Nigeria. The commission also voiced concern that the recent decline in global crude oil prices had not resulted in any corresponding reduction in petrol prices for Nigerian consumers at the pump.

According to data from Petroleumprice.ng, depot prices on Friday, July 17, ranged from N1,085 to N1,240 per litre. Pinnacle depot sold at N1,085 to N1,190, African Terminal at N1,090 to N1,189, and Sahara at N1,090 to N1,189. Other depots like Rain Oil sold at N1,130 to N1,240, Matrix at N1,120 to N1,220, and Optima at N1,117 to N1,235.

Meanwhile, global oil prices surged sharply after Donald Trump announced a naval blockade targeting Iran, raising fears of supply disruption. Brent crude rose more than 8% to trade above $103 per barrel, crossing the $100 threshold for the first time since last week. US West Texas Intermediate also climbed to $104.90 per barrel.

For Nigerian consumers, the standoff between marketers and the refinery, combined with rising global crude prices, means petrol prices at the pump could remain elevated in the near term unless a pricing agreement is reached quickly.