FG Takes Action As Marketers Halt Petrol Purchases, New Prices Emerge
- The federal government opened discussions with Dangote Petroleum Refinery after petroleum marketers flagged serious concerns
- IPMAN officials confirmed that filling stations across the country had suspended fresh fuel purchases
- The FCCPC raised alarm that falling global crude oil prices had yet to reflect in what Nigerian consumers pay at the pump
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The federal government has opened fresh discussions with the Dangote Petroleum Refinery in response to growing alarm among petroleum marketers over unstable petrol pricing and disruptions to fuel loading operations at the Lekki-based facility.
Marketers have largely pulled back from making large-scale purchases of Premium Motor Spirit (PMS) while they wait for clarity on the refinery's dollar-denominated pricing structure and the landed cost of newly imported fuel.
Source: Getty Images
The caution stems from fears that buying in bulk at present prices could result in significant losses should prices drop shortly afterwards.
Marketers to Rely on Old Stock
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, said dealers were drawing down on existing inventory bought at between N1,250 and N1,300 per litre rather than lifting fresh supplies from depots.
He attributed the reluctance to unresolved questions around pricing for new crude consignments and imported petroleum products, and called on the government to act quickly to restore confidence in the market, Punch reports.
The Western Zone Chairman of IPMAN, Oyewole Akanni, added that private depot owners had responded to the supply disruption by raising ex-depot prices to between N1,200 and N1,220 per litre from the previous rate of N1,170, before factoring in the cost of transportation.
He confirmed that some filling stations had shut temporarily after exhausting their stock, but emphasised that Nigeria was not in a fuel scarcity situation.
Akanni cautioned that pump prices could climb if the current standoff is not resolved swiftly, and urged motorists not to panic-buy.
The Dangote Petroleum Refinery pushed back against reports that it had halted operations, insisting that fuel loading at its facility remained ongoing and describing any suggestion of a shutdown as false.
Government Refuses to Cede Import Policy Control
A senior government official confirmed that negotiations with the refinery were continuing, touching on wider issues affecting the downstream petroleum market.
The refinery has reportedly expressed frustration over the government's continued issuance of import licences to other operators despite its domestic production capacity.
It has also demanded that a greater volume of crude be supplied to it in naira, arguing that the bulk of its crude purchases are still settled in dollars.
Source: Getty Images
The official indicated that the government remains committed to engagement but would not permit any single player in the sector to determine import policy or dominate the market.
Separately, the Federal Competition and Consumer Protection Commission (FCCPC) restated that the naira is the only lawful currency for domestic commercial transactions in Nigeria.
The commission also voiced concern that the recent decline in global crude oil prices had not resulted in any corresponding reduction in petrol prices for Nigerian consumers at the pump.
According to data obtained from Petroluemprice.ng, here are petrol prices on Friday, July 17, at various depots in the country
Lagos depots:
- Pinnacle: N1,085 to N1,190 (+N105)
- African Terminal: N1,090 to N1,189 (+N99)
- Sahara: N1,090 to N1,189 (+N99)
- Integrated: N1,090 to N1,189 (+N99)
- Lister: N1,090 to N1,200 (+N110)
Warri depots:
- Rain Oil: N1,130 to N1,240 (+N110)
- Matrix: N1,120 to N1,220 (+N100)
- Parker: N1,125 to N1,220 (+N95)
- Optima: N1,117 to N1,235 (+N118)
- A.Y.M Shafa: N1,125 to N1,230 (+N105)
Port Harcourt depots:
- Bulk Strategic: N1,136 to N1,225 (+N89)
- Masters: N1,137 to N1,230 (+N93)
- Matrix: N1,137 to N1,225 (+N88)
- Liquid Bulk: N1,140 to N1,225 (+N85)
Calabar depots:
- Mainland: N1,155 to N1,220 (+N65)
- Jenny: N1,155 to N1,225 (+N70)
Trump's decision pushed crude oil price
Earlier, Legit.ng reported that Global oil prices surged sharply after Donald Trump announced a naval blockade targeting Iran, raising fears of supply disruption across international energy markets.
Brent crude, the global benchmark, rose more than 8% to trade above $103 per barrel on Monday, crossing the psychologically significant $100 threshold for the first time since last week, when prices briefly surged past $111 per barrel.
US West Texas Intermediate (WTI) also climbed to $104.90 per barrel as of 05:25 AM (WAT), reflecting renewed risk sentiment among traders.
Source: Legit.ng
