Why filling stations are shutting down in Nigeria – IPMAN

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has explained why several filling stations across the country have temporarily shut down operations despite assurances that Nigeria is not experiencing a fuel scarcity.

According to the association, the closures are largely driven by uncertainty over petrol prices following the suspension of Premium Motor Spirit (PMS) loading at the Dangote Refinery.

IPMAN said many independent marketers have decided to halt fresh fuel purchases and suspend sales until there is greater clarity on the direction of petrol prices, fearing heavy financial losses if prices change unexpectedly.

The association, however, urged Nigerians not to panic, insisting that petroleum products remain available and that the situation does not amount to a nationwide shortage.

Why are filling stations closing?

Speaking with the News Agency of Nigeria (NAN) in Ibadan on Sunday, the Western Zone Chairman of IPMAN, Oyewole Akanni, explained that the suspension of PMS loading by the Dangote Refinery has disrupted the normal supply chain.

He said marketers whose existing fuel stocks have been exhausted are reluctant to buy fresh supplies from private depots because of the sharp rise in depot prices and uncertainty over future pricing.

According to Akanni, many operators fear purchasing fuel at high prices only for prices to fall when the Dangote Refinery resumes loading operations.

“The non-availability of fuel at some filling stations and the closure of others are due to fluctuations in the price of lifting fuel from depots.

“Since Dangote Refinery stopped selling PMS about four days ago, private depot owners have increased their prices.

“Many filling stations that have exhausted their stock are waiting to see whether prices will come down when Dangote Refinery resumes sales or increase further.

“Only a few marketers are buying products for now because of the uncertainty,” he said.

Depot prices continue to rise

Akanni disclosed that marketers buying products from private depots are now paying between ₦1,200 and ₦1,220 per litre, excluding transportation and logistics costs.

He added that some marketers who loaded products on Friday paid between ₦1,210 and ₦1,220 per litre, while a number of private depots have reportedly increased their prices to as much as ₦1,250 per litre.

According to him, marketers can still purchase petrol from suppliers such as Nipco and Aiteo at around ₦1,200 per litre, but the unstable pricing environment has made many operators cautious.

He noted that marketers are unwilling to risk huge financial losses by buying expensive products that could become cheaper once supply normalises.

IPMAN insists there is no fuel scarcity

Despite the closure of some filling stations, the association maintained that Nigeria is not facing a fuel scarcity.

Akanni appealed to motorists and other consumers to avoid panic buying, stressing that the temporary disruption should not be mistaken for a nationwide shortage of petroleum products.

“There is no fuel scarcity. Members of the public should not panic.

“Although there is a possibility of an increase in the pump price if the current situation persists,” he said.

He expressed optimism that normal fuel distribution would resume once the Dangote Refinery restarts PMS loading.

Marketers affected by refinery suspension

Akanni revealed that he had personally been affected by the suspension, stating that four truckloads of petrol meant for his filling stations had remained stranded at the Dangote Refinery for several days.

“I was supposed to have received four truckloads of PMS four days ago, but that has not happened because the trucks are at the Dangote Refinery, which has not been selling.

“The company is not even loading its own trucks. They are all parked there,” he said.

He added that the Nigerian National Petroleum Company Limited (NNPCL), which also sources products from the Dangote Refinery, has equally been affected by the disruption.

Hope for market stability

According to the IPMAN chairman, the current challenge facing the downstream petroleum sector is not the availability of fuel but uncertainty over pricing.

He said marketers are closely monitoring developments and expect stability to return once the Dangote Refinery resumes PMS loading operations.

Akanni expressed confidence that normal supply activities would resume in the coming days, easing pressure on marketers and consumers alike.

Until then, he advised Nigerians to remain calm and avoid panic purchases, assuring that the country’s fuel supply remains sufficient despite the temporary disruptions affecting some filling stations.