Private fuel depot owners across Nigeria have started quoting petrol at around N1,200 per litre after Dangote Petroleum Refinery stopped loading products at its gantry, marketers revealed on Thursday.
A pricing survey showed depots in Lagos, Warri, Port Harcourt and Calabar have moved Premium Motor Spirit to between N1,200 and N1,230 per litre on Thursday. The refinery halted loading at approximately 4 p.m. on Wednesday, according to Petroleumprice.ng, an industry pricing platform.
Higher petrol costs at depots will likely reach the pump within days as filling stations pass through increased landing costs. "When the gantry goes quiet, everybody down the chain starts marking up," a Lagos depot owner told reporters on condition of anonymity.
"Nobody wants to be caught selling old stock at old prices when the replacement cost resets higher."
Industry sources say Dangote is reviewing its pricing and transaction framework following its decision last week to invoice buyers in dollars instead of naira. The refinery has made no public statement about the pause and hasn't changed its posted ex-depot price, leaving marketers uncertain about its next step.
Aiteo and NIPCO in Lagos are selling PMS at N1,200 per litre. Optima in Warri has priced product at N1,220, while A.Y.M.
Shafa has gone to N1,230. Port Harcourt depots Liquid Bulk and Sigmund are both quoting N1,230, matching Mainland Depot in Calabar.
Chukwudi Akadike, national publicity secretary of the Independent Petroleum Marketers Association of Nigeria, said any cost affecting the refinery's operations will eventually hit consumer pump prices. He's warned that dollar-based sales make further price increases at the pump hard to avoid.
IPMAN has urged President Bola Tinubu's government to restore the naira-for-crude arrangement that had supported Dangote's local pricing since October 2024. On July 13, the refinery switched to pricing petrol, diesel and jet fuel in dollars at $0.779 per litre for gantry PMS, ending naira settlement.
Industry sources link the move to a widening gap between the dollar cost of imported and NNPC-supplied crude against naira revenue from domestic sales. The company has said it needs to close this gap to remain viable.
Not all industry voices view the shift negatively. Muda Yusuf, chief executive of the Centre for the Promotion of Private Enterprise, argued that a refinery buying most feedstock in dollars is making a rational choice by matching revenue currency to cost base.
"The enduring solution lies in increasing domestic crude availability, deepening foreign exchange stability and reducing Nigeria's dependence on imported feedstock," Yusuf added. "Only then can the full economic benefits of domestic refining be realised."
