Nigeria’s fuel market has entered a virtual standstill, as oil marketers suspend the release of new petrol (PMS) and diesel (AGO) prices amid expectations of a price upward revision from the Dangote Petroleum Refinery and Petrochemicals. The hesitation follows a recent surge in international crude oil prices.
More than 70 percent of depots across the country particularly in Lagos, Port Harcourt, and Calabar, with minimal operations recorded in Warri have paused price updates. Operators say the move is a safeguard against potential losses while they await clearer price direction from the refinery.
Market observers point to the sharp increase in global crude benchmarks, especially Brent and WTI, as the main reason for traders’ caution. Rising replacement costs have left depot owners reluctant to fix ex-depot prices until the Dangote Refinery announces its next sale rate.
Industry sources confirmed that many marketers are purposely withholding price adjustments to avoid selling at current lower rates, which could lead to losses if Dangote increases its prices in line with global market trends. This anticipation has intensified following a noticeable decline in fuel loading activities at the refinery. Reports indicate that no new loading tickets have been issued in recent days, while only earlier tickets are being processed a move widely seen as a signal of pending price changes.
The delay in ticket issuance has tightened fuel supply and stirred widespread uncertainty across the downstream sector, prompting traders to hold off on major transactions.
As a result, depot activity has slowed drastically, with trading largely frozen as players monitor developments from Dangote now the central player in Nigeria’s refined products market.
Industry analysts believe any new pricing decision from the refinery will significantly influence market dynamics. Given the continuous rise in global crude prices and reduced supply movement, dealers expect a possible revision in retail pump prices for petrol and diesel soon.
