Petrol price uncertainty grows as marketers suspend purchases, ex-depot cost rises to N1,220

By Ambrose Nnaji

Fuel marketers across Nigeria have suspended fresh purchases of Premium Motor Spirit (PMS), commonly known as petrol, as ex-depot prices at private depots in Lagos surged to between N1,200 and N1,220 per litre amid uncertainty over supply from the Dangote Refinery.

The Western Zonal Chairman of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chief Oyewole Akanni, disclosed this in an interview at the weekend.

Akanni attributed the development to the suspension of PMS loading at the Dangote Refinery about four days ago, saying marketers are reluctant to buy products because they are uncertain whether prices will rise further or decline once the refinery resumes loading.

According to him, the disruption has forced some marketers to source products from private depots at significantly higher prices, creating uncertainty over retail pump prices.

He said the lowest ex-depot price currently available at private depots in Lagos ranges from N1,200 to N1,220 per litre, excluding transportation costs, while marketers who lifted 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.

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

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,” Akanni said.

He added that marketers could still source products from Nipco and Aiteo at about N1,200 per litre, but frequent price changes have made it difficult for operators to make informed purchasing decisions.

“The major issue now is the fluctuation in depot prices, which has created uncertainty in the market,” he said.

Despite the supply disruption, Akanni maintained that Nigeria was not experiencing fuel scarcity and urged motorists not to engage in panic buying.

“There is no fuel scarcity. Members of the public should not panic,” he said, while warning that pump prices could increase if the current situation persists.

Akanni also revealed that the Dangote Refinery did not notify marketers before suspending PMS sales or provide reasons for the halt.

According to him, four truckloads of petrol destined for his filling stations have remained stranded at the refinery since the suspension began.

“I was supposed to receive four truckloads of PMS over the last four days, but that has not happened because the trucks are still 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.

He further noted that the Nigerian National Petroleum Company Limited (NNPC Ltd.), which also sources petrol from the Dangote Refinery, has been affected by the suspension.

Akanni, however, expressed optimism that normal supply would resume once the refinery restarts PMS loading.

The Dangote Refinery had reduced its ex-depot petrol price to N1,075 per litre on July 2 following a decline in global crude oil prices.

However, renewed geopolitical tensions in the Middle East, including the resurgence of the U.S.-Iran conflict, have pushed crude oil prices sharply higher, with Brent crude approaching $90 per barrel.

Last week, the refinery also announced a shift from naira-denominated petrol pricing to a dollar-based pricing framework, fixing its ex-depot price at $0.779 per litre for refined petroleum products.

At the prevailing official exchange rate of N1,380.50/$, the new benchmark is equivalent to approximately N1,075.61 per litre.