According to various reports from late 2024 and 2025, Nigerian petrol marketers are blaming private depot operators for the recent surge in petrol prices, which has seen the commodity nearing or exceeding N1,000 per litre in some areas.
Here’s a breakdown of the key reasons cited by marketers:
- Supply Glitches at Dangote Refinery: A primary cause of the price hike is a disruption in supply from the Dangote Petroleum Refinery. Reports indicate the refinery temporarily slowed or stopped loading fuel for independent marketers due to internal issues like a recent strike by a workers’ union, internal reorganization, and crude supply challenges.
- Depot Operators Exploiting Scarcity: When private depot owners saw that the Dangote Refinery had stopped or restricted supply to many marketers, they allegedly increased their ex-depot prices. This “sharp practice,” as some marketers have called it, takes advantage of the limited supply to hike costs, which is then passed on to consumers at the pump.
- Market Dynamics: The Nigerian downstream oil sector is deregulated. As a result, prices are influenced by supply and demand. When supply is tight, as it has been due to the issues at the Dangote Refinery, the scramble for available products drives up prices.
- Logistics and Other Factors: Marketers also point to other contributing factors, including challenges with logistics and the cost of crude oil in the international market. The exchange rate is another issue, as many operational expenses and fees are denominated in U.S. dollars.
This situation has led to fuel scarcity and long queues at filling stations in major cities. While the Nigerian National Petroleum Company Limited (NNPCL) has said it is working to restore normalcy, and some marketers believe the price hike is temporary, the volatility continues to cause hardship for consumers.
