Dangote Petroleum Refinery resumed the sale of Premium Motor Spirit (petrol) in naira to avert a fresh fuel supply disruption and prevent further increases in pump prices after some fuel importers allegedly withheld products in anticipation of higher prices, a senior company official has disclosed.
The official, who spoke on condition of anonymity because he was not authorized to speak to the media, said the refinery’s decision to abandon dollar-denominated petrol sales was not because its crude supply challenges had been resolved.
According to the official, marketers and importers deliberately held back existing fuel stocks in anticipation of higher prices, prompting the refinery to reverse course in what it described as a move taken in the national interest.
READ ALSO
“We took a decision in the interest of the country to start selling premium motor spirit in naira since we saw that the importers were holding back their goods, looking for a price rise,” the official said.
Dangote Refinery recently resumed petrol sales in naira after briefly switching to dollar-denominated transactions, a move that unsettled the downstream petroleum sector and drew the attention of the federal government.
The refinery subsequently announced a gantry price of N1,215 per liter, while the coastal price was fixed at N1,602,495 per metric ton.
Independent marketers had earlier suspended petrol loading from the refinery after it adopted dollar sales, arguing that sourcing foreign exchange for purchases would significantly increase costs and reduce access to locally refined fuel.
Dangote had defended the temporary policy, explaining that it was compelled to source additional crude oil from the international market after supplies under the federal government’s naira-for-crude arrangement became inadequate.
The company said discussions with the federal government on crude supply are continuing, expressing optimism that a lasting solution will be reached.
Before the refinery commenced commercial petrol production in 2024, Nigeria depended heavily on imported fuel despite being one of Africa’s leading crude oil producers. Years of poor performance by the country’s state-owned refineries contributed to persistent fuel shortages and the long-running fuel subsidy regime.
The refinery’s return to naira sales has already reshaped pricing in the downstream market. After some depot owners raised ex-depot prices to as high as N1,275 per litre during the temporary disruption, many have reduced prices to between N1,215 and N1,220 per litre following Dangote’s latest pricing announcement.
Pump prices across the country now range between N1,260 and N1,300 per liter, depending on location, amid renewed volatility in global crude oil prices triggered by geopolitical tensions in the Middle East and concerns over disruptions to international shipping routes.
While stronger crude prices could boost Nigeria’s oil export earnings and government revenues, analysts say sustained increases may also raise domestic fuel costs and add to inflationary pressures if global market conditions persist.
