Uncertainty has continued to unsettle Nigeria’s downstream petroleum sector as marketers slow fresh purchases of Premium Motor Spirit (PMS) following the Dangote Petroleum Refinery’s reported decision to price its products in United States dollars.
The development has prompted many marketers to adopt a wait-and-see approach, fearing that buying large volumes of petrol under the current pricing regime could expose them to heavy losses if prices change in the coming days. The situation has also fueled concerns over possible increases in pump prices and disruptions to fuel distribution.
Officials of the Independent Petroleum Marketers Association of Nigeria (IPMAN) said marketers were closely monitoring developments before committing to new purchases.
IPMAN National Publicity Secretary, Chinedu Ukadike, explained that marketers are grappling with uncertainty over the pricing of newly imported petroleum products and crude supplies.
According to him, marketers are currently selling products purchased at earlier prices and are unwilling to replenish stocks until there is greater clarity on the pricing template.
“Nobody wants to buy today only to discover tomorrow that prices have dropped. The uncertainty in the market is making marketers very cautious,” he said.
Ukadike noted that while product distribution has not stopped completely, the volume of fuel being lifted has declined significantly. He called on the Federal Government to quickly resolve the issues surrounding petroleum pricing to restore stability to the market.
Similar concerns were expressed by IPMAN’s Western Zone Chairman, Oyewole Akanni, who disclosed that several filling stations had suspended operations after exhausting existing supplies while awaiting clearer market signals.
He said marketers have increasingly turned to private depots following reported disruptions in supplies from the Dangote refinery, adding that depot prices have risen to between ₦1,200 and ₦1,250 per litre, excluding transportation costs.
Akanni maintained that there was no nationwide fuel shortage but warned that prolonged uncertainty could ultimately lead to higher retail prices.
He also alleged that several trucks scheduled to load products at the refinery had remained idle for days.
However, the Dangote Petroleum Refinery denied reports that it had suspended fuel loading.
A company official dismissed the claims as false, insisting that loading operations were continuing normally at the Lekki-based facility.
“The refinery is loading. Anyone can verify that operations are ongoing,” the official said.
Meanwhile, discussions between the Federal Government and the refinery have yet to resolve the issues that triggered the latest dispute.
Sources familiar with the negotiations said disagreements extend beyond petrol pricing and involve crude oil supply arrangements as well as the government’s continued issuance of import licences to petroleum marketers.
According to a senior government official, the refinery believes it is not receiving enough crude oil from the Nigerian National Petroleum Company Limited (NNPC) and is dissatisfied with the proportion of crude supplied under the naira-for-crude arrangement.
The official added that the refinery also opposes the continued approval of petrol import licences, arguing that its refining capacity is sufficient to serve the domestic market.
Government officials, however, insist that maintaining fuel imports remains necessary to preserve competition and guarantee adequate product supply.
The source explained that Nigeria also depends heavily on crude oil exports for foreign exchange earnings, making it difficult to allocate all domestic crude supplies under naira-based transactions.
The Federal Government said it remains engaged with the refinery in search of a mutually acceptable solution but stressed that it would not allow any single operator to dominate the country’s fuel supply.
The Federal Competition and Consumer Protection Commission (FCCPC) also reaffirmed that the naira remains Nigeria’s only legal tender for domestic commercial transactions, amid reports of a possible dollar-based pricing model.
FCCPC Director of Corporate Affairs, Ondaje Ijagwu, said the commission is also concerned that recent declines in international crude oil prices have not translated into lower pump prices for consumers.
He said the commission would continue monitoring developments and take appropriate action where there is evidence of anti-competitive practices or consumer exploitation.
The ongoing dispute comes as three oil marketing companies—Matrix Energy Group, AA Rano Nigeria and AYM Shafa Holdings—challenge in court the continued regulation of petroleum import licences, a legal battle that could influence future government policy on fuel imports.
As negotiations continue, industry stakeholders warn that prolonged uncertainty over pricing, crude supply and import policy could further destabilise the downstream petroleum market and place additional pressure on petrol prices nationwide.
