Reports indicate that petrol distribution at Nigeria’s Dangote Petroleum Refinery has experienced delays, raising fresh concerns about fuel availability in Africa’s largest oil market as crude oil prices surge amid rising tensions in the Middle East.
Over the weekend, fuel marketers said that trucks could not pick up Premium Motor Spirit (PMS), also known as petrol, from the refinery, leaving distributors uncertain about inventory levels and potential adjustments to the refinery’s pricing.
International oil markets have reacted strongly to increased geopolitical risks in the Gulf region. Brent crude, the global benchmark, briefly neared $120 per barrel ($119.50) before softening to $112.98 on Monday, reflecting traders’ anxieties about supply disruptions linked to the conflict.
Attention remains on the Strait of Hormuz, a narrow maritime corridor between Iran and Oman that handles roughly one-fifth of the world’s oil shipments. Any disturbance in tanker traffic through this passage can tighten supply rapidly and push energy costs higher.
Following the 2023 removal of fuel subsidies, petrol prices in Nigeria now closely track global crude trends, meaning such shocks can quickly ripple through domestic markets.
Prices at filling stations have risen sharply in recent days, climbing from about N850 per litre to over N1000 per litre in several major cities.
The Petroleum Products Retail Outlets Owners Association of Nigeria confirmed that its members were unable to load petrol as of Sunday.
National president Billy Gillis-Harry told The Guardian that marketers were awaiting clarity on how the refinery would respond to fluctuations in the global oil market.
“Loading did not occur today, and it is uncertain what will happen tomorrow. Crude prices are unstable; they can rise or fall. Until the Middle East tensions ease, it is difficult to forecast outcomes,” he explained.
Analysts report that the temporary halt has distributors closely watching the refinery’s ex-depot price, the rate charged before fuel is transported to retail stations.
Since Nigeria reduced petrol imports, the Dangote Refinery has become a critical source of domestic fuel. Changes in its operations or pricing can therefore have immediate nationwide effects on fuel supply and pump prices.
Anthony Chiejina, a spokesperson for the Dangote Group, rejected claims that loading had stopped, describing them as “false,” and reiterated that refinery pricing would continue to reflect prevailing international market conditions.
Experts emphasize that this episode highlights how quickly fluctuations in global oil markets, particularly those stemming from Gulf instability, can translate into uncertainty for fuel supplies in African economies that rely heavily on imports.