Fuel marketers halt petrol purchases as ex-depot price hits N1,220 per litre

Some fuel marketers in Nigeria have suspended the purchase of fresh petrol as the ex-depot price hit N1,220 per litre at depots in Lagos. The Western Zonal Chairman of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chief Oyewole Akanni, disclosed this on Sunday in an interview with the News Agency of Nigeria (NAN).

Akanni attributed the situation to the suspension of Premium Motor Spirit (PMS) loading at the Dangote Refinery about four days ago. He noted that marketers are unsure whether prices will go up or come down when Dangote resumes, which has forced them to hold off on purchases.

Uncertainty grips the market

According to Akanni, the halt in supply from Dangote has also compelled some marketers to source products from private depots at significantly higher prices. This has created uncertainty over retail pricing across the country.

The IPMAN boss noted that the cheapest ex-depot price at private depots in Lagos currently ranges between N1,200 and N1,220 per litre, excluding transportation costs. He said that marketers who bought products on Friday paid between N1,210 and N1,220 per litre.

“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 said. “Since Dangote Refinery stopped selling PMS about four days ago, private depot owners have increased their prices.”

He added: “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.”

Marketers stranded at Dangote Refinery

Akanni disclosed that Dangote Refinery did not give marketers prior notice or explain the reason for suspending PMS sales. According to him, four truckloads of petrol meant for his filling stations have remained stranded at the refinery since the suspension began.

“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.

Akanni further noted that the Nigerian National Petroleum Company Limited (NNPC Ltd.) was also affected because it sources petrol from the Dangote Refinery. He expressed optimism that normal supply would resume once the refinery resumes PMS loading.

No fuel scarcity yet, says IPMAN

Despite the disruptions, Akanni insisted that the country was not experiencing a fuel scarcity and urged motorists against panic buying. “There is no fuel scarcity, members of the public should not panic,” he said, adding that pump prices could increase if the current situation persists.

According to him, marketers can still obtain products from Nipco and Aiteo at about N1,200 per litre, but the continuous fluctuations in depot prices have made it difficult for operators to make purchasing decisions.

What this means for consumers

Dangote Refinery had slashed its ex-depot price for PMS to N1,075 per litre on July 2nd, following the fall in crude oil prices. However, the resumption of the U.S.-Iran conflict has seen oil prices skyrocketing again, with Brent Crude trading at nearly $90 per barrel as of Sunday.

Meanwhile, Dangote Refinery last week ended naira-denominated pricing for petrol, fixing its ex-depot price at $0.779 per litre under a new dollar-based pricing framework. At the prevailing official exchange rate of N1,380.50 to the US dollar, the new benchmark still translates to approximately N1,075.61 per litre.

For Nigerian consumers, the uncertainty in the downstream sector means pump prices could rise further if the Dangote Refinery suspension continues and private depot owners maintain higher prices. Motorists should brace for potential increases at the pump even as the country avoids a full-blown scarcity for now.