The Dangote Petroleum Refinery has said it reinstated the sale of Premium Motor Spirit (petrol) in naira to prevent a possible fuel supply disruption, following concerns that some importers were delaying the release of imported products in anticipation of higher market prices.
A senior official of the refinery, who spoke anonymously because they were not authorized to speak publicly, said the move was aimed at protecting the domestic fuel market rather than reflecting a resolution of issues surrounding crude oil supply.
According to the official, the refinery observed that some marketers were withholding imported petrol from the market while waiting for prices to increase, a trend that could have led to shortages if left unchecked.
The refinery recently abandoned its short-lived policy of pricing petrol in U.S. dollars and returned to naira transactions. Under the revised pricing structure, the gantry price of petrol is ₦1,215 per litre, while the coastal loading price stands at ₦1,602,495 per metric tonne.
The earlier shift to dollar sales had generated concerns among downstream operators, many of whom suspended purchases because of difficulties in accessing foreign exchange. Dangote Refinery had explained at the time that the decision was necessitated by inadequate crude supplies under the Federal Government’s naira-for-crude arrangement, forcing it to source additional crude from international markets using dollars.
Despite the return to naira sales, the refinery said discussions with the Federal Government over crude supply arrangements are still ongoing.
The official also criticized what was described as a long-standing preference for exporting crude oil while importing refined petroleum products, arguing that greater support should be given to domestic refining.
Nigeria’s dependence on imported petrol had persisted for years due to the limited operations of state-owned refineries. However, the commencement of production at the Dangote Refinery in 2024 significantly expanded local refining capacity, while the Nigerian National Petroleum Company Limited’s removal of implicit fuel subsidies also contributed to easing fuel shortages.
The refinery’s latest pricing decision has already affected the downstream market. Following an earlier suspension of gantry loading, depot prices had climbed to about ₦1,275 per litre because of tighter supply. However, many depot operators have since reduced their prices after Dangote announced its revised gantry price.
The development comes amid continued volatility in the global oil market, with crude prices recently surging above $100 per barrel following heightened tensions in the Red Sea before retreating to around $96 per barrel.
Analysts say that while stronger crude prices could improve Nigeria’s export earnings, sustained increases in global oil prices may also raise the cost of refined petroleum products and put additional pressure on domestic fuel prices if supply constraints continue.
