Fuel marketers stop buying as Dangote dollar pricing uncertainty sparks fresh petrol fears

• Petrol marketers are delaying fresh fuel purchases over uncertainty surrounding Dangote Refinery's new pricing model.

• Dangote Refinery denied reports that it has stopped loading fuel, calling the claims "fake news."

• The Federal Government and Dangote Refinery are still at loggerheads over crude supply and dollar-based pricing.

• FCCPC insists the naira remains Nigeria's only legal tender for domestic transactions and says it is monitoring petrol pricing closely.

Nigerians may not be seeing fuel queues yet, but another round of petrol uncertainty is already brewing.

Petroleum marketers across the country have slowed down the purchase of Premium Motor Spirit (PMS), commonly known as petrol, as they wait for clarity over the pricing template being adopted by the Dangote Petroleum Refinery. The move comes amid concerns that buying large volumes now could leave them counting losses if prices suddenly drop in the coming days.

According to marketers, many are choosing to sell existing stock rather than purchase fresh supplies because no one is sure where petrol prices are headed next.

The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, explained the situation.

"The issue is simple; 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, which we are buying around ₦1,250 and ₦1,300."

He added: "So everyone is just skeptical about loading products because when you load, you don't know the next price, if it is going to reduce or go higher. You are still expected by consumers to sell at the prevailing price."

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The uncertainty has also affected some filling stations, especially in the South-West, where marketers say fresh purchases have reduced significantly.

IPMAN's Western Zone Chairman, Oyewole Akanni, said some stations temporarily stopped operations after exhausting their stock because depot prices have continued to fluctuate.

According to him, marketers are now sourcing petrol from private depots at between ₦1,200 and ₦1,220 per litre, excluding transportation costs.

He said: "Many filling stations that have exhausted their stock are waiting to see whether prices will come down when the Dangote refinery resumes sales or increase further. Only a few marketers are buying products for now because of the uncertainty."

However, Akanni urged Nigerians not to panic.

"There is no fuel scarcity. Members of the public should not panic. Although there is a possibility of an increase in the pump price if the current situation persists."

Despite the concerns raised by marketers, the Dangote Petroleum Refinery has dismissed reports that it suspended fuel loading.

A spokesperson for the company described the reports as false.

"The refinery is loading. Anybody can go there to check. That's fake news to say we are not loading."

The bigger issue appears to be an ongoing disagreement between the Federal Government and Dangote Refinery.

Sources familiar with the discussions said the refinery is unhappy that the government continues to issue petrol import licences to marketers despite its refining capacity. It is also reportedly dissatisfied with the amount of crude oil supplied to it by the Nigerian National Petroleum Company Limited (NNPC), especially the relatively small portion sold in naira.

According to the government source, these concerns pushed the refinery towards adopting a dollar-based pricing model for petroleum products.

The source said: "So the facility is saying that if the government cannot increase the crude they are giving to him in naira, the new dollar pricing template is what he will do. So those are the two issues."

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Meanwhile, the Federal Competition and Consumer Protection Commission (FCCPC) says the Nigerian naira remains the only legal tender for domestic commercial transactions.

The commission also questioned why recent drops in global crude oil prices have not translated into lower petrol prices for Nigerians.

According to FCCPC, it will continue monitoring the downstream sector and take action if there is evidence of anti-competitive practices or consumer exploitation.

For now, there is no official fuel scarcity, but the uncertainty over pricing means both marketers and motorists are watching developments closely. If the standoff between the government and Dangote Refinery continues, experts say Nigerians could see fresh changes in pump prices in the weeks ahead.