Over 4,900 petrol retail outlets have reportedly shut down operations across Nigeria.

The closures have been attributed to frequent and unpredictable changes in the price of Premium Motor Spirit (PMS) by the Dangote Petroleum Refinery and fuel importers.

Confirming the development, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, said that more than 70% of the group’s 7,000 retail stations had closed shop, Punch reports.

Gillis-Harry said:

“PETROAN has over 7,000 retail outlets, and over 70% are now out of business. This is largely because we can’t access loans, and pricing fluctuates drastically between when we order products and when they arrive at our stations."

He noted that the situation has become so dire that many marketers now pool resources to afford a single truckload of petrol.

PETROAN president added:

“There’s no justification for the fluctuating prices from the refinery. The uncertainty is killing our businesses.

“Marketers now seek out suppliers offering ‘soft landing’ deals just to stay afloat.”

Marketers facing pressure from fuel price changes

In addition to retail closures, it is reported that least 70 tank farms representing around 65% of Nigeria’s 120 approved facilities have been abandoned as operators bypass traditional storage in favour of direct trucking to reduce overheads and losses.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has also reported mounting losses among its over 20,000 members.

The group’s National Publicity Secretary, Chinedu Ukadike, said fluctuating prices and logistics bottlenecks have made bulk purchases risky.

He noted

“Our trucks now spend up to three days in transit. By the time they arrive, prices have dropped and we incur losses ranging from N300,000 to N1 million per truck,.

“Marketers now combine funds just to buy a single truckload, operating on a skeletal level.”

Dangote adjusts prices

The $20 billion, 650,000-barrel-per-day Lekki-based refinery has adjusted its prices at least six times between January and April 2025, initial N950 per litre down to the current N831 per litre.

On Tuesday, May 20, the Dangote Refinery again slashed petrol prices to N831 per litre, from N834 the previous day.

In a move to woo marketers, the refinery is refunding the N3 difference to customers a repeat of its earlier N10 per litre rebate strategy, which ended May 15.