Fuel marketers said trucks were unable to lift Premium Motor Spirit (PMS), commonly known as petrol, from the refinery over the weekend, leaving distributors uncertain about supply and possible changes to the refinery’s pricing.
The development comes as international oil markets react to rising geopolitical risks in the Gulf region. Brent crude, the global oil benchmark, briefly surged close to $120 per barrel ($119.50) but later ease slightly to $112.98 on Monday, after traders responded to supply fears linked to the conflict.
Much of the concern centres on the Strait of Hormuz, a narrow waterway between Iran and Oman through which roughly a fifth of the world’s oil shipments pass. Any disruption to tanker traffic through the strait can quickly tighten global supply and push energy prices higher.
In Nigeria, where petrol prices now largely reflect global market movements following the removal of fuel subsidies in 2023, such shocks can quickly ripple through the domestic fuel market.
Petrol prices in Nigeria have climbed sharply in recent days, rising from around N850 per litre in many filling stations in the past week to over N1000 per litre in several cities.
The Petroleum Products Retail Outlets Owners Association of Nigeria said its members could not load petrol from the refinery as of Sunday.
Its national president, Billy Gillis-Harry, told The Guardian that marketers were waiting to see how the refinery would respond to the volatile oil market.
“Today we didn’t load and we are not sure what will happen tomorrow. It is because of the possibilities around crude oil prices. The price of crude is not stable; it can go up or come down. Until the crisis in the Middle East de-escalates, it is difficult to predict what will happen.”
Market players say the pause in loading has left distributors watching closely for a possible adjustment in the refinery’s ex-depot price, the rate marketers pay before transporting petrol to filling stations.
Nigeria has increasingly relied on the Dangote refinery for domestic fuel supply since the country scaled back petrol imports. As a result, changes in the refinery’s operations or pricing can quickly affect fuel availability and pump prices nationwide.
However, the Dangote Group rejected claims that loading had been halted.
A spokesperson for the refinery, Anthony Chiejina, dismissed reports that operations had stopped, describing them as “nonsense” and saying the refinery’s product pricing would continue to reflect prevailing global market conditions.
Analysts say the latest developments show how global oil market volatility, particularly disruptions around the Gulf region, can quickly translate into uncertainty for fuel markets in import-dependent economies across Africa.
