Following the Dangote Petroleum Refinery’s suspension of petroleum product sales in naira, several filling stations have begun stockpiling Premium Motor Spirit (PMS), commonly known as petrol, in anticipation of a price increase.

Retailers are preparing for higher prices, projecting that the price of petrol will soon rise due to the Federal Government’s failure to continue crude oil sales to the refinery in local currency.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has urged retailers to avoid panic buying, warning that such actions could lead to substantial losses.

Last week, Dangote Refinery announced it had temporarily halted the sale of petroleum products in naira after talks between it and the Nigerian National Petroleum Corporation Limited (NNPCL) over a naira-for-crude deal collapsed.

The refinery, with a capacity of 650,000 barrels per day, expressed concerns over the mismatch between its sales proceeds and crude oil purchase obligations, which are currently denominated in US dollars.

“We wish to inform you that Dangote Petroleum Refinery has temporarily halted the sale of petroleum products in naira. This decision is necessary to avoid a mismatch between our sales proceeds and our crude oil purchase obligations, which are denominated in US dollars,” the refinery said in a statement.

“To date, our sales of petroleum products in naira have exceeded the value of naira-denominated crude we have received. Therefore, we must adjust our sales currency to align with our crude procurement currency.”

Following the announcement, the cost of loading petrol at private depots in Lagos surged to approximately N900 per litre, up from less than N850 per litre before the news broke.

In an interview with The PUNCH on Sunday, IPMAN’s National Publicity Secretary, Chinedu Ukadike, expressed concern over profiteering by depot owners as some filling stations rush to stockpile fuel.

He noted that demand for petrol had risen significantly since Dangote’s announcement, prompting depot owners to raise their prices.

The downstream petroleum sector has been left in a state of uncertainty, with no official clarification yet from Dangote Refinery on how PMS sales will proceed. Despite this, some filling station owners are already purchasing fuel at higher prices, hoping to sell it at a profit once prices rise.