Petrol, Diesel Prices Pause as Marketers Await Dangote Refinery Price Review
- Petroleum marketers have suspended fresh pricing for petrol and diesel across major depots
- The marketers reportedly froze pricing while awaiting a price review by Dangote refinery
- Loading activities at the Dangote refinery have slowed, limiting supply into the market
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Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
Petrol marketers across Nigeria have paused fresh pricing for petrol and diesel amid expectations that the Dangote Petroleum Refinery and Petrochemicals may soon review its prices upward following a surge in global crude oil markets.
According to industry data obtained from Petroleumprice.ng, more than 70% of depots in key locations such as Lagos, Port Harcourt, and Calabar have suspended new pricing, with only limited activity reported in Warri.
Source: UGC
Marketers delay pricing over loss concerns
Market sources said traders are holding back from setting new prices to avoid potential losses that could arise if the Dangote refinery increases its gantry price.
The uncertainty follows a strong rally in global crude benchmarks, including Brent crude and West Texas Intermediate, which have recorded notable gains in recent trading sessions.
Industry players explained that rising crude prices have heightened concerns over replacement costs, prompting depot owners to adopt a cautious approach until there is clarity from the refinery.
Loading slowdown fuels speculation
Further indications of a possible price adjustment emerged as loading activities at the refinery reportedly slowed.
Sources disclosed that no new loading tickets are being issued, with only previously approved tickets currently honoured. This has effectively limited fresh supply entering the market.
Traders interpret this development as a likely signal of an impending price review, as supply visibility tightens across the downstream sector.
Depot activities stall nationwide
The combined effect of pricing uncertainty and restricted supply has led to a temporary slowdown in depot operations nationwide.
Transactions have largely been put on hold as stakeholders monitor developments and await direction from the Dangote refinery, which remains a key supplier of petrol in Nigeria.
Analysts say the refinery’s next pricing decision is expected to shape broader market trends, given its significant influence on downstream pricing.
With crude oil prices continuing to rise and market caution intensifying, stakeholders anticipate a possible adjustment in petrol and diesel prices in the coming hours.
Source: Getty Images
Expert explains why Iran war causes fuel hike in Nigeria
Legit.ng earlier reported that an energy expert explained that the reliance of local refineries on foreign crude supplies is responsible for the recent hike in petrol prices.
Idoko said that Nigeria’s local refineries that depend on imported crude oil are facing mounting cost pressures as global prices rise amid tensions in the Middle East due to the war between Iran and US-backed Israel. He stressed that domestic refineries are vulnerable to international market volatility, an abnormal situation for an oil-producing country.
He argued that the current situation in the global oil market should serve as a wake-up call for Nigeria to implement reforms that will ensure local refineries are supplied with domestic crude under fair and transparent conditions.
Source: Legit.ng
