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Marketers Accuse Dangote Refinery of Withholding Fuel Despite Advance Payments

by Radarr Africa

Petroleum marketers have accused the Dangote Petroleum Refinery of failing to load their petrol trucks weeks after they made full payments for supplies, raising fresh controversy over the refinery’s operations and fuel distribution process.

The marketers, who spoke on condition of anonymity, alleged that despite paying for millions of litres of Premium Motor Spirit (PMS) over two weeks ago, they had not been allowed to lift their consignments. They claimed the refinery had introduced new policies that reduced allocations and prioritised certain marketers following an upward adjustment in the ex-depot price.

One bulk buyer said that several independent marketers had paid for products long before the refinery increased its price but were yet to receive any supply. “We are seriously disappointed with the current situation at Dangote. We made payments more than two weeks ago, and up till now, we have not been allowed to load products,” the marketer said. “It appears the refinery is giving preference to about 20 selected marketers while sidelining others who paid earlier. The situation has worsened since the recent price adjustment.”

Another marketer confirmed that many dealers were now under pressure from commercial banks after borrowing heavily to finance the transactions. “We are counting losses because of the interest on borrowed funds,” he said. “The refinery has reduced our allocations following an increase in its gantry price from ₦820 to ₦877 per litre. They are loading their partners while leaving independent marketers stranded.”

He further alleged that while smaller operators waited, major distributors such as Bovas and A.A. Rano were being given priority. “We paid before them, but our trucks have not been called up,” he lamented.

However, the refinery management, through its Vice President, Mr. Devakumar Edwin, had earlier denied claims that loading operations were suspended. During a media tour last weekend, Edwin dismissed reports that maintenance work had halted fuel loading, insisting that the refinery was operating at full capacity.

He said the facility had over 310 million litres of petrol in storage as of last weekend, excluding daily production. “Bring your tankers, we will load. Any number of trucks you bring, we’ll load them,” Edwin said. “No one can say I’m not loading. We have capacity to supply. As of today, I have over 310 million litres of PMS in my tanks.”

But the Independent Petroleum Marketers Association of Nigeria (IPMAN) disagreed, saying the refinery must first clear outstanding orders before making new claims about loading capacity.

The association’s Publicity Secretary, Mr. Chinedu Ukadike, said the statement by Edwin was misleading, adding that several marketers had paid for products but had not received supplies. “If we don’t load fuel, what will we sell? That’s not a challenge,” he said. “Many marketers paid for petrol three weeks ago, yet no loading has taken place. There are bottlenecks and other issues. Some trucks have been parked at the refinery for weeks.”

Ukadike maintained that marketers were ready to lift petrol once their allocations were confirmed, noting that the refinery had not given any clear reason for the delay. “Some of our members paid over a month ago and are still waiting. Their trucks are on standby, but Dangote has not called them up,” he added.

Efforts by journalists to get the refinery’s response to these allegations were unsuccessful as messages sent to its corporate communications team were not answered as of press time.

The development has contributed to the recent surge in petrol prices across the country. Prices have risen from about ₦865 per litre to between ₦920 and ₦950 per litre, despite the relative stability in crude oil prices and foreign exchange rates.

Checks showed that crude oil prices had dropped from aboven

Despite these favourable trends, depot owners and the Dangote refinery reportedly raised petrol prices, further straining consumers already grappling with high inflation and rising costs of living.

Independent marketers and depot owners have continued to trade blame over the sudden price increase. The Nigerian National Petroleum Company Limited (NNPCL) retail outlets have adjusted pump prices to about ₦928 per litre, while Dangote’s partners — MRS and Heyden Petroleum — sell between ₦923 and ₦925 per litre.

Industry observers say the situation has deepened concerns about market transparency, competition, and pricing fairness in Nigeria’s downstream oil sector. Many Nigerians who expected that the commencement of local refining by Dangote would reduce fuel import costs and stabilize prices are now frustrated by the continued volatility in pump prices.

The Independent Petroleum Marketers Association of Nigeria has urged the Federal Government to intervene and ensure equitable distribution of petrol from the refinery. Ukadike said, “We are calling on the government to ensure that all marketers who have paid are allowed to load immediately. The situation is affecting businesses and could worsen the current fuel scarcity if not addressed.”

As of Thursday, petrol prices at filling stations in Lagos, Abuja, and Ogun ranged from ₦920 to ₦950 per litre, depending on location and supplier. Consumers fear that if the loading delay at the Dangote refinery persists, prices may rise further in the coming weeks.

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