Dollar Sale Dispute: Marketers Halt Fuel Loading at Dangote Refinery, FG Intervenes
By Victor Idajili
Petroleum marketers say fuel loading has been put on hold at the Dangote Petroleum Refinery following the plant’s decision to sell fuel in dollars.
The development has raised concerns about possible fuel supply tightness across the country. The refinery however denied the claim, insisting that loading is still ongoing at its Lekki facility.
Several marketers said they suspended large-scale loading in the last few days while waiting for clarity on the refinery’s new pricing template and the cost of newly imported products.
They fear buying large volumes now only for prices to drop shortly after.
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, IPMAN, Chinedu Ukadike, said marketers are being careful because of uncertainty around the next petrol price.
“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,” Ukadike said.
He added that the expected arrival of new crude and imported petrol with unclear pricing has worsened the situation.
“The problem we are now facing is that this new crude oil that they are bringing - what will be the template? Also, those who have brought in petroleum products and are given licences are also estimated to place their price at ₦1,350, which marketers are also wary of,” he stated.
According to him, the uncertainty has not completely stopped distribution but has significantly reduced volumes.
“The Federal Government has to look inward and resolve this issue once and for all. This template issue should be resolved immediately,” Ukadike urged.
Marketers in the South-West confirmed that uncertainty over petrol prices has forced many to halt fresh purchases, leading to temporary closure of some filling stations.
IPMAN Western Zone Chairman, Oyewole Akanni, told NAN in Ibadan that loading of Premium Motor Spirit at the Dangote refinery was suspended about four days ago.
He said marketers are now sourcing from private depots at higher prices. The cheapest ex-depot price in Lagos currently ranges between ₦1,200 and ₦1,220 per litre, excluding transportation.
“Since the 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 the Dangote refinery resumes sales or increase further,” Akanni said.
He noted there is no fuel scarcity and urged the public not to panic buy, though he warned pump prices could rise if the situation persists.
Akanni added that the refinery gave no prior notice before suspending sales. “I was supposed to have received four truckloads of PMS four days ago, but that has not happened because the trucks are at the Dangote refinery, which has not been selling,” he said.
A spokesperson for the Dangote Group dismissed reports of a shutdown as “fake news,” saying loading is ongoing.
“The refinery is loading. Anybody can go there to check. That’s fake news to say we are not loading,” the official said.
He noted that marketers importing petrol are struggling to compete because prices in Lomé, Togo have risen, making it hard to match Dangote’s prices.
A senior government official said the Federal Government and Dangote Refinery are yet to agree on the issues that led to the dollar-based pricing template.
The official said the dispute goes beyond petrol price to include crude supply volumes and the proportion sold to the refinery in naira.
“Dangote is unhappy about two things; one is that the government gave import permits to some companies while his refinery is capable. Then number two is that the refinery is saying that it is not getting enough crude oil even from NNPC. The percentage of naira for crude that they are giving to the facility is not a lot,” the official explained.
He said if the government cannot increase naira crude supply, the refinery will stick with dollar pricing.
The official added that the refinery’s location in a free trade zone allows it flexibility on currency for sales.
The Federal Competition and Consumer Protection Commission said the naira remains Nigeria’s only lawful currency for domestic transactions.
“The commission’s position is clear. The Nigerian naira is the legal tender in Nigeria and remains the lawful currency for domestic commercial transactions,” said FCCPC Director of Corporate Affairs, Ondaje Ijagwu.
The commission also expressed concern that the recent drop in international crude prices has not reflected in retail petrol prices.
“Pump prices increased rapidly when crude oil prices rose, yet the subsequent decline in international crude oil prices has not translated into corresponding reductions for consumers,” Ijagwu said.
The government has convened a stakeholders’ meeting with regulators, refiners and marketers to address the issue.
Three major oil marketers - Matrix Energy, AA Rano and AYM Shafa - have also gone to court seeking an order for the NMDPRA to continue issuing import licences.
A government official warned that Nigeria cannot sell all crude in naira without affecting foreign exchange earnings.
“So this is the issue. What’s our main source of foreign exchange? It’s still crude. If they then sell everything in naira, where is the dollar going to come from to do other things?” he asked.
He said the government will continue engaging Dangote but will also allow more imports if no agreement is reached, to prevent any monopoly in the downstream sector.
