Pump price hike looms as Dangote suspends PMS sales to marketers — IPMAN

The Independent Petroleum Marketers Association of Nigeria, IPMAN, has warned that petrol pump prices may rise if the suspension of Premium Motor Spirit, PMS, loading at the Dangote Refinery persists, saying the development has forced marketers to source products from private depots at significantly higher prices.

The Zonal Chairman of IPMAN, Western Zone, Chief Oyewole Akanni, disclosed this in an interview with the News Agency of Nigeria (NAN) on Sunday in Ibadan, attributing the growing uncertainty in the downstream petroleum sector to Dangote Refinery’s decision to suspend PMS sales to marketers about four days ago.

Mr Akanni said the disruption had compelled marketers to rely on private depots, where ex-depot prices have risen sharply, creating uncertainty that has forced many filling station operators to suspend fresh purchases while awaiting clarity on pricing.

“Although there is no fuel scarcity for now, there is a possibility of an increase in pump price if the current situation persists,” he said.

According to him, the cheapest ex-depot price at private depots in Lagos currently ranges between N1,200 and N1,220 per litre, excluding transportation costs, while marketers who purchased products on Friday paid between N1,210 and N1,220 per litre.

“The non-availability of fuel at some filling stations and the closure of others are due to fluctuations in the price of lifting fuel from depots.

“Since Dangote Refinery stopped selling PMS about four days ago, private depot owners have increased their prices.

“Many filling stations that have exhausted their stock are waiting to see whether prices will come down when Dangote Refinery resumes sales or increase further. Only a few marketers are buying products for now because of the uncertainty,” Mr Akanni said.

Despite the disruption, the IPMAN official urged motorists and other consumers not to engage in panic buying, insisting that the country was not experiencing fuel scarcity.

“There is no fuel scarcity. Members of the public should not panic,” he said.

Mr Akanni disclosed that Dangote Refinery neither gave marketers prior notice nor explained the reason for suspending PMS sales, leaving many operators stranded.

He said four truckloads of petrol meant for his filling stations had remained at the refinery since the suspension began.

“I was supposed to have received four truckloads of PMS since four days ago, but that has not happened because the trucks are at the Dangote Refinery, which has not been selling.

“The company is not even loading its own trucks. They are all parked there,” he said.

According to him, the Nigerian National Petroleum Company Limited (NNPC Ltd) has also been affected because it sources part of its petrol supplies from the Dangote Refinery.

Mr Akanni added that while some private depots were selling PMS for as much as N1,250 per litre, marketers could still obtain products from Nipco and Aiteo at about N1,200 per litre.

“The major issue now is the fluctuation in depot prices, which has created uncertainty in the market,” he said.

He expressed optimism that normal supply would resume once Dangote Refinery recommenced loading of PMS.

Meanwhile, checks by NAN showed that several filling stations across Ibadan metropolis remained closed on Sunday, leaving motorists and other consumers wondering about the cause of the disruption.