Fuel Market Grinds To A Halt As Traders Delay New Prices Over Anticipated Dangote Increase

Petroleum marketers in Nigeria have stopped issuing updated prices for petrol (PMS) and diesel (AGO) as they brace for a likely price increase from the Dangote Petroleum Refinery and Petrochemicals. This comes after a significant rise in global crude oil prices.

More than 70 percent of depots in major areas including Lagos, Port Harcourt, and Calabar with only minimal operations in Warri have chosen not to set new prices. Traders are adopting this careful approach to prevent possible financial losses while waiting for the refinery’s next decision.

Market players attribute the hesitation to the recent strong gains in crude oil benchmarks, particularly Brent and WTI. The rising costs have raised worries about higher replacement expenses, leading depot operators to pause their pricing until they receive clearer signals from Dangote.

Insiders revealed that marketers are intentionally delaying announcements to steer clear of selling their current inventory at lower rates, which might result in losses if the Dangote Refinery raises its ex-depot (gantry) prices to match international trends.

Adding to the anticipation of an upward adjustment, fuel loading at the Dangote Refinery has noticeably decreased. Reliable sources reported that no fresh loading tickets are being released, and only earlier-issued tickets are being processed. This restriction has limited new fuel entering the market, which many see as a clear indication that a price revision is on the way.

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The slowdown in ticket issuance has reduced supply heightened uncertainty in the downstream sector, as operators adjust their strategies ahead of the expected change.

As a result, depot activities have come to a near standstill, with most buying and selling on hold while everyone looks to Dangote Nigeria’s leading petrol supplier for guidance.

Analysts believe the refinery’s upcoming pricing announcement will heavily influence the entire market due to its strong position in the supply chain.

Given the continued climb in global crude prices and the prevailing caution on the supply side, stakeholders anticipate possible changes to pump prices for both petrol and diesel very soon. Traders remain vigilant and are tracking every development.