Nigeria’s downstream petroleum sector has been thrown into fresh uncertainty following reports that the Dangote Petroleum Refinery has adopted a dollar-based pricing template for fuel sales, a move that has prompted many marketers to suspend fuel loading and new purchases. Industry players say the decision has created confusion over future petrol prices, with marketers unwilling to buy large volumes of fuel without knowing whether prices will rise or fall in the coming days. The situation has already sparked concerns about possible supply disruptions and higher pump prices across the country.
Petroleum marketers explained that the uncertainty surrounding pricing has forced them into a cautious position. According to industry leaders, many dealers are relying on existing fuel stocks while waiting for clarity on the pricing structure for both locally refined and imported petroleum products. The fear is that purchasing fuel at current rates could lead to losses if prices drop shortly afterward, leaving marketers trapped between volatile market conditions and consumer expectations.
The uncertainty has reportedly affected operations in several parts of the country, with some filling stations temporarily shutting down while others struggle to secure affordable supplies. Marketers in the South-West revealed that the suspension of fuel loading at the refinery pushed them toward private depots where prices are significantly higher. Although industry representatives insist there is no nationwide fuel scarcity, they warn that continued instability could eventually translate into increased pump prices for consumers.
However, Dangote Refinery has strongly rejected claims that fuel loading has stopped, describing such reports as false. A company official maintained that loading operations remain active at the Lekki-based facility and suggested that some competitors may be fueling misinformation. Despite the refinery’s denial, the controversy has intensified debate over the future of Nigeria’s fuel market, especially as tensions continue between the refinery and the Federal Government over crude supply arrangements and the issuance of import licences to marketers.
At the center of the dispute is the refinery’s argument that it still purchases a large portion of its crude oil in dollars due to limited naira-based crude allocations. While government officials say discussions are ongoing, regulators have reiterated that the naira remains Nigeria’s only legal tender for domestic transactions. With both sides holding firm positions, consumers and businesses are watching closely, hoping for a resolution that will stabilize fuel prices and prevent further pressure on an economy already grappling with inflation and rising living costs.
source: punch
