ABUJA, Nigeria (VOICE OF NAIJA)-The Dangote Petroleum Refinery has reverted to the sale of Premium Motor Spirit (petrol) in naira following allegations that fuel importers were withholding their stocks in anticipation of higher prices, a management official of the company has disclosed.
The official, who requested anonymity because they were not authorised to speak to the media, explained that the decision to stop dollar-denominated petrol sales was not due to the resolution of crude oil supply challenges.
According to the source, the refinery resumed naira sales to avert fuel scarcity and prevent further increases in petrol prices, alleging that importers were deliberately holding back their products while expecting prices to rise.
“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 source said.
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The refinery recently resumed petrol sales in naira, ending its brief dollar-denominated pricing regime. In a notice issued by its commercial department on Wednesday, the refinery announced a gantry price of N1,215 per litre and a coastal price of N1,602,495 per metric tonne.
The move reversed the refinery’s earlier decision to price petrol in United States dollars, a development that sparked concerns across the downstream petroleum sector and prompted intervention by the Federal Government.
Independent marketers had earlier suspended petrol loading from the refinery after it adopted dollar-denominated sales, citing difficulties in accessing the foreign exchange needed for transactions.
The refinery had defended the temporary switch to dollar sales, stating that it was no longer receiving sufficient crude oil under the Federal Government’s naira-for-crude initiative and had to source additional crude from the international market using dollars.
Speaking further, the source said discussions between the Dangote Group and the Federal Government were ongoing, expressing optimism that the government would honour any agreement reached.
“We are still in talks with the government, but I hope that they will be sincere,” the source noted.
The official also criticised what they described as a preference by some government officials for exporting crude oil and importing refined petroleum products.
“As you know, they like to sell the crude to the traders outside the country and import the petroleum products,” the source stated.
Before the Dangote refinery commenced operations in 2024, Nigeria relied heavily on imported petrol despite being one of Africa’s leading oil producers.
The refineries in Port Harcourt, Warri and Kaduna remained largely non-operational, leaving the country dependent on fuel imports amid recurring shortages and the controversial fuel subsidy regime.
With the commencement of operations at the Dangote refinery, the downstream petroleum sector became more decentralised.
The Nigerian National Petroleum Company Limited also ended the payment of implicit fuel subsidies, bringing an end to the long queues that had characterised fuel distribution.
Last week, some depot owners increased petrol gantry prices to as much as N1,275 per litre after the Dangote refinery temporarily suspended loading operations at its gantry.
Following the refinery’s announcement of a new gantry price of N1,215 per litre, several depots reduced their prices to remain competitive.
Data from Petroleumprice.ng showed depot prices ranging between N1,215 and N1,220 per litre on Sunday.
Retail pump prices have also settled between N1,260 and N1,300 per litre, depending on location.
The recent increase in petrol prices has been linked to renewed tensions in the Middle East, which drove up global crude oil prices.
After surging above $100 per barrel on Thursday for the first time in nearly two months, oil prices closed at $96 per barrel on Friday following escalating attacks on commercial shipping in the Red Sea, raising fears of prolonged disruptions to global energy supply routes.
While higher crude oil prices could boost Nigeria’s export earnings and government revenue, they may also increase the cost of imported refined petroleum products, worsen inflationary pressures and place additional financial strain on consumers if domestic fuel supply remains inadequate.