Petrol Nears ₦1,000 per Litre as Marketers Move to Import Fuel Independently Amid Dangote Refinery Glitches

Nigeria’s petroleum marketers have begun arrangements to import petrol independently, following fresh reports of production setbacks at the Dangote Petroleum Refinery. The development comes as the price of petrol, also known as Premium Motor Spirit (PMS), approaches ₦1,000 per litre in major cities, worsening the economic strain on millions of Nigerians already facing high living costs.

According to reports, the Independent Petroleum Marketers Association of Nigeria (IPMAN) and members of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) are finalising plans to commence independent fuel importation in order to stabilise the market and create competition that could drive down prices.

How One-Party System Shapes Democracy In Nigeria

Supply Disruptions Push Petrol Prices Up

Speaking with The PUNCH on Tuesday, IPMAN’s National Publicity Secretary, Chinedu Ukadike, confirmed that marketers are preparing to import petrol products as part of efforts to reduce the retail price, which has been climbing steadily for weeks.

“Yes, petrol prices are still going to come down because some marketers, especially DAPPMAN members, have applied and will soon start importing petrol. If their prices are cheaper than Dangote’s, we’ll patronise them,” Ukadike said. “Once competition returns, prices will definitely drop.”

However, current realities suggest a worsening crisis. Between Monday and Tuesday, pump prices reportedly jumped from around ₦865 to between ₦920 and ₦955 per litre, with some filling stations in Abuja, Sokoto, and Lagos selling as high as ₦1,000 per litre depending on location and brand.

This surge contradicts earlier expectations that petrol prices would fall to about ₦841 per litre, following Dangote Refinery’s launch of a logistics-free distribution scheme in mid-September. The refinery had promised to sell petrol at ₦841 in the South-West and ₦851 in Abuja, Edo, Rivers, Kwara, and Delta states.

But nearly a month later, filling stations have yet to reflect this promised reduction. Instead, prices have climbed beyond ₦900, sparking long queues and public frustration in major cities such as Lagos, Ogun, Abuja, and Port Harcourt.

Depot Owners Blamed for Price Hikes

IPMAN’s National President, Abubakar Shettima, blamed private depot owners for the latest surge in petrol prices, noting that they raised their ex-depot prices after the Dangote Refinery temporarily halted fuel loading operations.

“These DAPPMAN depots are the only ones selling products now. As soon as they noticed Dangote had stopped loading, they increased their prices,” Shettima said. “But I believe this is temporary. If Dangote resumes full loading, prices will come down again.”

On Monday, depot prices reportedly rose from an average of ₦830 per litre to about ₦890. Data from PetroleumPrice.com on Tuesday revealed the following depot prices:

• Matrix: ₦900 per litre
• Fynefield: ₦900
• Liquid Bulk: ₦900
• Northwest: ₦895
• Pinnacle: ₦885
• RainOil: ₦890
• NIPCO: ₦850
• Aiteo: ₦878
• Sigmund: ₦890

As depot rates increased, filling stations quickly adjusted their pump prices to reflect the higher costs.

The Nigerian National Petroleum Company Limited (NNPCL) also raised prices at its retail outlets, selling petrol at ₦928 per litre in Lagos and Ogun—an increase of about ₦50 from August’s average of ₦870.

NNPCL spokesperson Andy Odeh explained that the adjustment was due to higher ex-depot prices. “All filling stations are retailers. When depot prices rise, retail prices must adjust accordingly,” he said.

Dangote Refinery’s Production Glitches and Supply Shortage

Multiple industry sources confirmed that Dangote Refinery, which has a production capacity of 650,000 barrels per day, has recently faced operational setbacks, including temporary halts in loading and reduced supply to private marketers.

The Major Energies Marketers Association of Nigeria (MEMAN) disclosed that since last Thursday, the refinery has restricted gantry loading mainly to its own trucks and those of its affiliate company, MRS, thereby starving independent marketers of supply.

According to Jeremiah Olatide, CEO of PetroleumPrice.ng, the refinery’s reduced activity has created a nationwide ripple effect. “Dangote is currently prioritising its own trucks and has suspended sales to private depots since last week,” Olatide said. “They are likely managing low stock levels.”

Olatide revealed that crude supply shortages and the recent layoff of about 800 refinery staff have further worsened the situation. “They’re having challenges with crude supply, and the mass sack of workers has affected production efficiency,” he noted.

He likened the current petrol supply disruption to the earlier gas supply crisis, warning that the refinery’s reduced output could destabilise the downstream oil market. “Clearly, there is a supply problem with PMS distribution, similar to the gas issue we faced earlier,” Olatide warned.

Private depots that previously bought petrol at ₦820 per litre from the refinery have now suspended sales, with some reportedly preparing for further price hikes due to scarcity.

Impact on Nigerians and National Economy

The sharp rise in petrol prices has triggered widespread concern among motorists and consumers nationwide. In Sokoto State, residents complained that fuel prices have climbed from ₦930 to between ₦960 and ₦1,050 per litre, depending on the filling station.

A motorist at an AA Rano station told The PUNCH: “I had to borrow money from my wife just to buy fuel. I’ve been on the queue for nearly an hour. We hear it’s ₦992 in Lagos, but here in Sokoto, we’re paying almost ₦1,000 already.”

In the Federal Capital Territory (FCT), petrol now sells for ₦955 at NNPC outlets in Gwarinpa and Lugbe, while stations in Lagos charge between ₦920 and ₦940. Similar conditions persist in Edo, Rivers, Oyo, and Gombe States, where fuel prices range from ₦900 to ₦1,000 per litre amid panic buying and long queues.

The latest hike has intensified concerns about inflation, transportation costs, and the overall cost of living. Analysts warn that if the situation persists, it could trigger another round of price shocks in food, manufacturing, and logistics sectors—further straining household incomes.

Marketers and Experts Hope for Quick Recovery

Despite the current turbulence, marketers remain optimistic that the crisis will ease once Dangote Refinery resumes full operations and independent importation begins.

IPMAN’s Ukadike noted that “a temporary reorganisation and recent workers’ strike at the refinery” caused the slowdown. He added that depot owners have exploited the situation to inflate prices artificially.

“There’s reorganisation at the refinery and a NUPENG-related strike that affected refining activities,” Ukadike explained. “But we expect normal operations to resume soon. Once Dangote and DAPPMAN importers compete in the market, prices will stabilise.”

For now, Nigerians continue to hope that the country’s long-promised self-sufficiency in fuel supply will soon become a reality. But with pump prices now hovering around ₦1,000 per litre, patience is wearing thin, and the call for sustainable energy solutions grows louder.

Efforts to reach Dangote Refinery spokesperson, Anthony Chiejina, for comments were unsuccessful as calls and messages were not returned as of press time.