Federal Government Steps In as Fuel Loading Halts at Dangote Refinery Amid Dollar-Pricing Dispute

The Federal Government has stepped in to resolve a major standoff between petroleum marketers and the Dangote Petroleum Refinery after a dispute over dollar-denominated pricing and crude supply allocations disrupted fuel distribution across the country.

Petroleum product marketers have significantly scaled back fuel lifting from the Lekki-based refinery in recent days while awaiting clarity on new pricing templates and the landing costs of imported petrol. The Independent Petroleum Marketers Association of Nigeria noted that uncertainty over fluctuating prices has forced members into a cautious approach, pushing ex-depot prices at private facilities to between ₦1,200 and ₦1,250 per litre. Conversely, management at the Dangote Group refuted claims of a complete operational shutdown, maintaining that truck loading operations within the plant are ongoing.

Negotiation sources indicate that the underlying tension stems from two main issues. First, the refinery management has expressed dissatisfaction with the government’s continued issuance of import licences to third-party marketers despite its refining capacity. Second, the facility contends that its crude allocation purchased in naira covers only a fraction of its operational needs, forcing it to make majority purchases in foreign currency and prompting a shift toward a dollar-based pricing model.

In response, government negotiators cautioned that halting imports entirely could create a market monopoly, affirming that petrol imports remain an available leverage to guarantee national supply. Meanwhile, the Federal Competition and Consumer Protection Commission reiterated that the naira remains the only lawful currency for domestic commercial transactions while calling for recent drops in global crude prices to reflect at retail pumps. Further complicating the dispute, major oil marketers have filed a court suit to ensure regulatory authorities continue renewing product import licences.