IPMAN Warns Depot Owners Against Hoarding as FG, Dangote Resume Talks

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has slammed private depot owners for stockpiling petrol and inflating prices following the Dangote Petroleum Refinery’s suspension of naira-based sales.

Retailers have begun hoarding Premium Motor Spirit (PMS) in anticipation of a price hike, fearing that the failure of the Federal Government to continue crude oil sales to Dangote Refinery in naira could drive up costs.

However, IPMAN’s National Publicity Secretary, Chinedu Ukadike, cautioned against panic buying, warning that marketers could suffer losses if Dangote Refinery eventually reduces prices.

Last week, Dangote Refinery announced a temporary halt to petroleum product sales in naira, citing a mismatch between its sales revenue and crude oil procurement costs, which are denominated in US dollars.

“Dear valued customers, we wish to inform you that the 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,” the refinery stated.

Following the announcement, petrol loading prices at private depots in Lagos surged from under N850/litre to nearly N900/litre.

Ukadike criticized depot owners for exploiting the situation by hiking prices, warning that their actions could destabilize the market.

“Some depot owners are already increasing the price. But we are asking our marketers not to panic-buy. When Dangote Refinery resumes naira sales and prices drop, those who hoarded fuel will suffer heavy losses,” he said.

He advised marketers to avoid overstocking, warning that a sudden price crash could lead to financial setbacks.

Meanwhile, the Federal Government and Dangote Refinery have resumed discussions to resolve the naira-for-crude impasse.

“I have gathered that the Federal Government and Dangote Refinery are close to resolving the matter. The two parties are reviewing the naira-for-crude deal,” Ukadike disclosed.

Stakeholders are now awaiting an official resolution, which could determine the future pricing of petroleum products in the country.