Petrol loading resumes as depot prices climb amid dollar policy uncertainty

Fuel marketers are once again loading petrol and diesel from private depots, ending an almost week-long disruption that stemmed from recent price adjustments in the downstream petroleum sector. The Independent Petroleum Marketers Association of Nigeria confirmed that loading operations have resumed, easing fears of an imminent fuel scarcity.

Loading operations were temporarily suspended as depot owners adjusted their prices and required additional payments from marketers who had already paid at lower rates. Chinedu Ukadike, National Publicity Secretary of IPMAN, explained that depot owners do not offer refunds when prices fall. He also noted that marketers were initially cautious due to price volatility, exacerbated by the ongoing Middle East crisis.

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Marketers have started loading in other depots. You know, once there is a price change, they will stop and take their stock, then reset their prices around the rest of them. Then also look at the tickets they have sold before and see how they will do top-up. What we call top-up is the differential of the former price, so they can buy at the current price. These are the exercises that are ongoing. And once they are ongoing, you cannot load.

Questions remain about the Dangote Petroleum Refinery's new policy requiring payments in dollars. Ukadike stated he could not confirm if marketers were paying in dollars for products loaded directly from the refinery's gantry in Lagos, though offshore and coastal loading are reportedly dollar-denominated. He promised to investigate further.

Meanwhile, petrol loading prices have climbed significantly at major private depots in Lagos, with marketers paying up to N1,275 per litre. This increase follows the Dangote Refinery's shift to dollar-based transactions, contributing to the prevailing uncertainty in the market. Prices in other regions showed mixed trends, with some depots maintaining previous rates and others seeing slight reductions.

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I know that Dangote has fixed its price in dollars, but no marketer has ever informed me that they have paid in dollars, especially those loading from the gantry. But for offshore loading or coastal loading, I can assure you that it will be paid in dollars. But for gantry loading, I don’t know. By tomorrow, I will confirm.