Nigeria’s downstream oil sector has slipped into near paralysis as petroleum marketers suspend fresh pricing, anxiously awaiting a likely increase from the Dangote Petroleum Refinery and Petrochemicals amid rising global crude oil costs.
Across major depot hubs in Lagos, Port Harcourt, and Calabar—with only skeletal activity in Warri—over 70 percent of operators have halted the release of new prices for petrol (PMS) and diesel (AGO), effectively stalling market transactions.
Industry sources say the freeze is a calculated move by traders seeking to avoid heavy losses, as surging global benchmarks like Brent Crude and West Texas Intermediate continue their upward climb.
The spike has raised fears of higher replacement costs, forcing depot owners into a wait-and-see mode.
Insiders reveal that marketers are deliberately holding back on price announcements to avoid selling existing stock at lower rates, only to face losses if Dangote Refinery adjusts its ex-depot (gantry) prices upward in response to international market trends.
Further fueling speculation, fuel loading activities at the refinery have slowed significantly.
Sources indicate that no new loading tickets are being issued, with only previously approved ones currently honored—a development widely interpreted as a precursor to an imminent price review.
The tightening supply and reduced ticket issuance have compounded uncertainty across the downstream sector, pushing buying and selling activities to a standstill as stakeholders await clear direction from the country’s dominant fuel supplier.
Analysts warn that any pricing decision by the Dangote Refinery will ripple across the entire market, given its commanding influence in Nigeria’s fuel supply chain.
With crude oil prices still climbing and supply signals tightening, expectations are mounting for an upward adjustment in pump prices. For now, traders remain on edge, closely monitoring every move in what could shape the next phase of Nigeria’s fuel market.
About The Author
