The Dangote Petroleum Refinery has attributed its decision to resume selling Premium Motor Spirit (petrol) in naira to the actions of fuel importers, alleging that they withheld products from the market in anticipation of higher prices.
A senior company official, who spoke anonymously because they were not authorized to speak publicly, said the refinery’s decision was aimed at preventing fuel shortages and protecting consumers from further increases in petrol prices, rather than indicating that its crude oil supply challenges had been resolved.
According to the official, the refinery observed that some importers were delaying the release of their fuel stocks while waiting for prices to rise, prompting the company to reverse its dollar-denominated sales policy in the interest of market stability.
The refinery recently announced the resumption of naira sales, fixing its gantry price at ₦1,215 per litre and the coastal price at ₦1,602,495 per metric tonne. The move reversed its earlier decision to sell petrol in U.S. dollars, which had unsettled operators in the downstream sector and prompted intervention by the Federal Government.
Independent marketers had suspended purchases from the refinery after the introduction of dollar pricing, citing difficulties in sourcing foreign exchange. Dangote had defended the temporary policy, explaining that reduced crude supplies under the Federal Government’s naira-for-crude arrangement forced it to source additional crude from the international market using dollars.
The company said discussions with the Federal Government on crude supply arrangements are ongoing and expressed hope that a lasting agreement would be reached.
The official also criticized what was described as a preference by some government stakeholders for exporting crude oil while importing refined petroleum products, despite the country’s growing domestic refining capacity.
Following the refinery’s return to naira sales, depot owners reduced their prices to remain competitive, with depot rates now ranging between ₦1,215 and ₦1,220 per litre. Retail petrol prices currently hover between ₦1,260 and ₦1,300 per litre, depending on location.
The latest developments come as global crude oil prices remain elevated due to renewed tensions in the Middle East and disruptions to shipping in the Red Sea. While higher oil prices could increase Nigeria’s export earnings, analysts warn they may also raise domestic fuel costs and inflation if local supply remains constrained.
