- Dangote Refinery has halted sales in naira, citing financial mismatches since crude purchases are in dollars, raising concerns over fuel prices.
- Industry stakeholders warn of potential price hikes, as depot prices have already increased, and IPMAN may switch to dollar transactions if the situation continues.
Dangote Petroleum Refinery has temporarily stopped selling petroleum products in naira, sparking concerns over fuel pricing and market stability.
In a statement, the refinery’s management explained that the decision was to prevent financial mismatches.
It noted that while it had been selling in naira, its crude oil purchases were in dollars. “Our sales of petroleum products in naira have exceeded the value of naira-denominated crude received. To align with our crude procurement currency, we must temporarily adjust our sales currency,” the company stated.
The refinery will resume sales in naira once it receives crude oil allocations from the Nigerian National Petroleum Company Limited (NNPCL).
The suspension has raised fears of price instability. Dr Muda Yusuf, Chief Executive of the Centre for the Promotion of Private Enterprise (CPPE), warned that the move could disrupt the recent decline in fuel prices and increase demand pressure on foreign exchange. “It will change the dynamics of domestic petroleum pricing and could lead to a reversal of the trend of falling prices,” Yusuf said.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) also expressed concern. Its National President, Abubakar Maigandi, said the inability to load petrol at Dangote Refinery had already increased depot prices.
“Depot owners in Lagos have raised prices from N815 per litre to N835 per litre,” he said, warning that IPMAN may also start selling in dollars if the situation persists.
IPMAN’s National Public Relations Officer, Chinedu Ukadike, urged the Federal Government to continue selling crude to Dangote in naira to prevent further pressure on the exchange rate. “If Dangote Refinery sells in dollars, we may have no choice but to do the same,” he added.
Meanwhile, Zacch Adedeji, Chairman of the Technical Sub-Committee on Domestic Sales of Crude Oil and Refined Products in Naira, reassured that the naira-for-crude policy remains in place. He insisted that local refineries still have access to domestic crude under structured agreements.
“The initiative supports competitive pricing and market efficiency. The policy remains in force and continues to benefit the economy,” Adedeji said.
The Federal Government has pledged to ensure stability in crude supply to domestic refineries while monitoring the impact of Dangote’s decision on the market.