Marketers pause Dangote fuel loading as FG moves to calm tensions
By: Abudu Olalekan
Dollar sale row has thrown Nigeria’s downstream oil market into fresh confusion, with many fuel marketers slowing or suspending loading from the Dangote Petroleum Refinery over its reported dollar-based pricing move, while the Federal Government steps in to contain the fallout.
Fuel marketers say they’ve been treading carefully after Dangote refinery’s decision to sell petrol in dollars created a new round of uncertainty in the market. For many of them, it’s a simple business risk. Buy too much now, and you could be stuck with expensive stock if prices drop a few days later. So they’ve eased off. Some say loading has slowed sharply. A few even claim trucks are just sitting there.
Several marketers told Reportersroom on Sunday that the situation had already started affecting supply decisions across the country. They said they were waiting to understand the refinery’s new pricing template, while also watching the expected landing cost of imported fuel. Nobody wants to jump in blind. That’s the mood right now.
Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, said marketers were being extra cautious because the next petrol price is still anyone’s guess. According to him, most of what is being sold now comes from old stock already stored in tank farms, bought at around N1,250 to N1,300 per litre.
He said fresh crude supply arrangements and new imports have only made the market harder to read. And that’s the problem. If marketers buy large volumes now and prices suddenly crash, they carry the loss. If prices rise, consumers still expect them to keep selling at the old rate for a while. It’s a tight spot.
Ukadike stressed that distribution hasn’t stopped completely, but the volume being lifted has dropped. He also called on the Federal Government to step in quickly and settle the pricing issue before it creates deeper disruption in the sector.
In the South-West, the uncertainty is already biting. Marketers in the region said many dealers have stopped making fresh purchases, and some filling stations have temporarily shut their doors. Oyewole Akanni, IPMAN’s Western Zone chairman, said the trouble started after the suspension of Premium Motor Spirit loading at the Dangote refinery about four days ago.
According to him, marketers have now been pushed toward private depots, where prices are higher. In Lagos, he said, the lowest ex-depot prices are now around N1,200 to N1,220 per litre, not including transport. Those who bought on Friday reportedly paid even more.
Akanni said some stations that have run out of stock are holding back, hoping prices will soften once Dangote resumes normal sales. Others are simply refusing to buy at rates they believe could change overnight. Still, he insisted there is no nationwide fuel scarcity yet and urged the public not to panic buy. For now, at least.
He also said Dangote refinery did not give marketers prior notice or any clear explanation before the disruption. In his case, he claimed four truckloads of petrol meant for his stations had remained stranded at the refinery since loading stopped.
But the refinery is pushing back hard on that version of events.
A spokesman for the Dangote Group dismissed claims that fuel loading had stopped, calling the reports false. The official told Reportersroom that loading was ongoing at the Lekki facility and said anyone could verify it.
Behind the immediate dispute, though, there’s a bigger fight brewing.
Government sources say the Federal Government and Dangote refinery are still locked in talks over the issues that led to the refinery’s dollar pricing decision. At the center of the disagreement are two major complaints from the refinery: the continued issuance of fuel import licences to marketers, and dissatisfaction over crude oil supply terms, especially the small portion reportedly being sold in naira.
A senior official familiar with the discussions said Dangote believes it should not be competing against importers while also struggling to secure enough crude locally. The refinery is also said to be unhappy that much of its crude purchases still have to be done in dollars. That, the source explained, is what led to the tougher pricing stance.
And yes, that raises serious concerns. If petrol is priced in dollars at home, local fuel prices become even more exposed to exchange rate swings. That’s bad news for a market already dealing with enough volatility.
The Federal Government, however, appears unwilling to fully bend. One official said discussions are still ongoing, but made it clear that the government cannot allow one operator to dominate the market or force restrictions on imports while broader supply and pricing issues remain unresolved.
The same official noted that Dangote refinery’s location in a free trade zone gives it some room to choose how it runs its commercial operations, including the currency it uses. Even so, that doesn’t mean the controversy disappears.
The Federal Competition and Consumer Protection Commission has also weighed in, and its position is blunt: the naira remains the only legal tender for domestic transactions in Nigeria. FCCPC spokesman Ondaje Ijagwu said the commission’s stance is clear and unchanged.
He added that the commission is also concerned that falling global crude prices have not translated into meaningful relief at Nigerian filling stations. According to him, pump prices moved up quickly when crude rose, but have not come down at the same pace now that crude prices are easing. That imbalance, he said, is one reason the government recently called a stakeholders’ meeting involving regulators, refiners and marketers.
If no agreement is reached, the government may lean more heavily on imports. Officials argue that Nigeria has imported petrol for decades and can continue to do so if necessary to prevent supply gaps or market abuse. One official even pointed to cement as a cautionary example, saying import restrictions did not bring prices down in that sector.
The matter is getting more complicated by the day. Three major oil marketers — Matrix Energy Group, AA Rano Nigeria and AYM Shafa Holdings — are already in court over the continued issuance and renewal of petroleum import licences. They argue that they have invested heavily in storage, logistics and distribution, and should not be pushed out of the market.
That legal battle makes it harder for the government to satisfy everyone. It also shows this is no longer just a pricing issue. It’s about market control, competition, supply security and foreign exchange pressure, all tangled together.
For now, the result is uncertainty. Marketers are nervous, stations in some areas are slowing purchases, and consumers are watching pump prices with the usual anxiety. No full-blown scarcity yet. But the tension is real. And if this drags on, it won’t stay quiet for long.
Olalekan A. Abudu is a seasoned and dedicated News Journalist at REPORTERS ROOM, with over eight years of experience. He specializes in politics, climate change, health, and education, while also covering security, economic, and judicial issues. Committed to accuracy and balanced reporting, Olalekan exemplifies the principles of public-interest journalism.
