Some Oil Marketing Companies (OMCs) are accusing Bulk Oil Distribution Companies (BDCs) of creating what they describe as an artificial fuel shortage on the market.
Some OMCs claim the situation is a strategy to help the BDCs benefit from the expected significant increase in petroleum product prices at the pumps from next Monday, March 16, 2026.
The OMCs have also told JOY BUSINESS that some BDCs have stopped selling to them in an attempt to hoard products in anticipation of a price spike from March 16, 2026.
There are also reports that some BDCs have significantly increased their prices, forcing some smaller oil marketing companies that buy on a cash and carry basis to purchase products at what they describe as very high prices.
JoyBusiness is also learning of another development on the market that made it very difficult to load petroleum products over the weekend due to some operational challenges.
One oil marketing firm told Joy Business that the situation had not improved as of Monday morning, and they were worried about the possible impact on product supply.
When JOY BUSINESS contacted the Chamber of Oil Marketing Companies, it confirmed the current challenge on the market, adding that it is working with the relevant authorities and regulators to address the situation quickly.
Star Oil on product supply
Star Oil, in a notice to its customers, announced that it has started experiencing some product shortages at its service stations across the country.
However, the company was quick to clarify that the situation is not due to hoarding to benefit from the expected price hike from March 16, 2026. It explained that the shortages are rather due to challenges with the GRA ICUMS system, which was down over the weekend, making it difficult to load products.
Star Oil added that the development has not only affected its operations but also other OMCs, making it difficult for them to load products.
The company further stated in the notice that the issue had not been resolved as of Monday morning, raising concerns that it could affect the entire industry going forward.
The major oil marketing firm also noted that because Star Oil stations record some of the highest sales volumes, situations like this tend to affect them more quickly than others.
March 16 price review
Major industry players and the regulator, the National Petroleum Authority, have all projected a significant increase in petroleum product prices at the pumps from March 16, 2026.
This is expected to be influenced by the sharp rise in crude oil prices on the international market due to the current developments in the Middle East.
Industry players argue that this could be one of the biggest price increases witnessed on the market in recent times.
Some oil marketing firms and industry watchers are already calling for a review of levies within the price buildup by government to help cushion consumers ahead of the March 16 review.
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Source: www.myjoyonline.com