Marketers and stakeholders in Nigeria’s downstream oil sector have raised concerns over persistent price instability and uncertainties surrounding the supply, distribution and retailing of petroleum products across the country.
Industry players, including analysts and unions, said the development is creating anxiety within the sector and could negatively impact the nation’s economy if not urgently addressed.
According to them, the situation stems from structural challenges that have continued to affect the petroleum industry over the past year.
Speaking with journalists, several marketers warned of what they described as looming risks associated with Dangote Refinery’s single-train operational structure and fluctuating pricing regime, cautioning that Nigeria could face a major economic crisis without corrective action.
They argued that the refinery’s operational and pricing model may undermine stability within the petroleum supply chain and urged regulators to ensure strict compliance with provisions of the amended Petroleum Industry Act (PIA).
Independent marketers pointed to recent price adjustments in the industry, noting that ex-depot prices reportedly rose from about ₦699 to ₦799, while pump prices moved from around ₦731 to as high as ₦920 in some locations.
They described the situation as erratic pricing, which they said creates uncertainty for both marketers and consumers.
Some analysts also alleged that certain market practices within the sector could discourage competition and investment, warning that dominance by a single major supplier could create entry barriers for other investors.
According to them, unhealthy competition and pricing disputes could threaten the sustainability of the petroleum sector.
“Petroleum products influence the prices of almost all goods, including food items. Failure to enforce competition laws and relevant provisions of the PIA could hurt businesses and the wider economy,” one stakeholder said.
They further noted that Dangote Refinery, with a capacity of 650,000 barrels per day, operates as a single-train facility, meaning production depends on one processing line, making operations vulnerable to disruptions in the event of technical faults.
Some stakeholders claimed that any operational shutdown could significantly reduce supply, noting that Nigeria’s daily petrol demand is estimated at about 70 million litres, while local supply currently falls short of that figure.
Industry unions therefore urged the Federal Government and the National Assembly to ensure full enforcement of PIA provisions to guarantee fairness and stability in the petroleum industry.
They also called for greater pricing transparency and measures to strengthen supply capacity, warning that persistent supply-demand imbalances could trigger broader economic consequences if not properly managed.
