Manny Ita –
Reports that petrol loading has stalled at the Dangote Petroleum Refinery have raised fresh concerns about fuel supply in Nigeria as global crude oil prices surge following escalating geopolitical tensions in the Middle East.
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 levels and possible adjustments to the refinery’s pricing structure.
The development comes as international oil markets respond to growing geopolitical risks in the Gulf region. Brent crude, the global benchmark for oil prices, briefly climbed to about $119.50 per barrel before easing slightly to around $112.98 on Monday as traders reacted to fears of supply disruptions linked to the conflict.
Much of the concern centres on the Strait of Hormuz, a narrow waterway between Iran and Oman through which roughly one-fifth of global oil shipments pass. Any disruption to tanker traffic through the route can quickly tighten global supply and push energy prices higher.
In Nigeria, where petrol prices have increasingly reflected global market dynamics following the removal of fuel subsidies in 2023, shocks in the international oil market can rapidly affect domestic fuel prices.
Petrol prices across the country have risen sharply in recent days, climbing from around ₦850 per litre in many filling stations last week to more than ₦1,000 per litre in several cities.
The Petroleum Products Retail Outlets Owners Association of Nigeria said its members were unable to 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 ongoing volatility in global crude prices.
“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,” he said.
Industry participants said the temporary pause in loading has left distributors closely watching for a potential change in the refinery’s ex-depot price, which is the rate marketers pay before transporting petrol to retail stations.
Nigeria has increasingly relied on the Dangote refinery for domestic fuel supply after scaling back petrol imports, meaning any operational change or pricing adjustment at the facility could quickly influence fuel availability and pump prices nationwide.
However, the Dangote Group denied reports that petrol loading operations had been halted.
A spokesperson for the refinery, Anthony Chiejina, dismissed claims that activities had stopped, describing the reports as “nonsense” and insisting that the refinery’s pricing will continue to reflect prevailing global market conditions.
Analysts say the situation highlights how volatility in the global oil market, particularly disruptions linked to tensions around the Gulf region, can quickly create uncertainty in fuel markets across Africa, especially in economies that remain heavily exposed to international energy price movements.
