Dollar sale row: Marketers halt Dangote fuel loading, FG steps in -

Spread the love

Marketers of petroleum products have stated that the loading of fuel has been put on hold at the Dangote Petroleum Refinery following the facility’s decision to sell fuel in dollars.

Many marketers told The PUNCH on Sunday that the facility was not even loading its trucks, sparking fear of possible fuel tightness across the country. But the refinery denied the claim, arguing that fuel loading was ongoing within the Lekki-based plant.

Petroleum marketers said they suspended large-scale fuel loading in the last few days as they await clarity on the new pricing template being adopted by the refinery. They also await the cost of newly imported petroleum products.

The development heightened uncertainty in the downstream petroleum sector, with marketers wary of buying large volumes of petrol at the prevailing prices only to see the cost of the product fall shortly after.

The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, in a telephone interview on Sunday, said marketers were being forced to adopt a cautious approach because of the uncertainty surrounding the next price of petrol.

“The issue is simple; marketers are not buying because they are trying to look at the market dynamics. Whatever we are using today is existing products in tank farms, which we are buying around N1,250 and N1,300,” Ukadike said.

He said the uncertainty had been worsened by the expected arrival of new crude supplies and imported petrol, whose pricing templates remained unclear.

“The problem we are now facing is that this new crude oil that they are bringing- what will be the template? Also, those who have brought in petroleum products and are given licences are also estimated to place their price at N1,350, which marketers are also wary of,” he stated.

Ukadike said marketers were therefore reluctant to load large volumes because they could not predict whether the price of petrol would rise or fall after they had purchased the product.

“So everyone is just sceptical about loading products because when you load, you don’t know the next price, if it is going to reduce or go higher. You are still expected by consumers to sell at the prevailing price,” he said.

According to him, the uncertainty has not completely halted the distribution of petrol, but has significantly reduced the volume being loaded by marketers.

He urged the Federal Government to intervene and resolve the dispute over the pricing template, warning that continued uncertainty could further disrupt the downstream market. “The Federal Government has to look inward and resolve this issue once and for all. This template issue should be resolved immediately,” Ukadike said.

In a report by NAN, marketers in the South-West confirmed that the uncertainty over petrol prices has forced many to halt fresh purchases, leading to the temporary closure of some filling stations.

The Zonal Chairman of IPMAN, Western Zone, Oyewole Akanni, disclosed this in an interview with the News Agency of Nigeria on Sunday in Ibadan. Akanni said the situation was triggered by the suspension of loading of Premium Motor Spirit at the Dangote refinery about four days ago.

Ukadike said marketers were therefore reluctant to load large volumes because they could not predict whether the price of petrol would rise or fall after they had purchased the product.

According to him, the uncertainty has not completely halted the distribution of petrol, but has significantly reduced the volume being loaded by marketers.

In a report by NAN, marketers in the South-West confirmed that the uncertainty over petrol prices has forced many to halt fresh purchases, leading to the temporary closure of some filling stations.

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

Official denies claim

However, a spokesman for the Dangote Group dismissed the report as “fake news”, accusing some marketers of spreading false information. The spokesman told one of our correspondents that the refinery had not stopped loading petroleum products.

“The refinery is loading. Anybody can go there to check. That’s fake news to say we are not loading,” the official, who pleaded not to have his name in print due to the sensitive nature of the matter, stated.

He noted that marketers importing petrol were finding it difficult to compete because prices in Lomé, Togo, had risen, making it increasingly difficult to match Dangote’s prices.

FG vs Dangote

The PUNCH reports that the Federal Government and the Dangote Petroleum Refinery have yet to reach an agreement on the issues that prompted the refinery to adopt a dollar-based pricing template, a development that could prolong uncertainty in the downstream petroleum sector and lead to a further increase in the price of Premium Motor Spirit, also known as petrol.

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

Official denies claim

He noted that marketers importing petrol were finding it difficult to compete because prices in Lomé, Togo, had risen, making it increasingly difficult to match Dangote’s prices.

FG vs Dangote

My News HQ reports that the Federal Government and the Dangote Petroleum Refinery have yet to reach an agreement on the issues that prompted the refinery to adopt a dollar-based pricing template, a development that could prolong uncertainty in the downstream petroleum sector and lead to a further increase in the price of Premium Motor Spirit, also known as petrol.

“Then number two is that the refinery is saying that it is not getting enough crude oil even from the Nigerian National Petroleum Company Limited. The percentage of naira for crude that they are giving to the facility is not a lot.

“Number one is that the facility is still not getting enough, according to him. And number two is that the portion they are selling to him in naira is still a little. So he still has to do most purchases in dollars. So the facility is saying that if the government cannot increase the crude they are giving to him in naira, the new dollar pricing template is what he will do. So those are the two issues.”