Rise In Fuel Price Imminent As Dangote Stops Sale Of Petrol In Naira

Petroleum products marketers have predicted a likely rise in the price of petroleum products as Dangote Refinery halts the sale of petrol in naira.

Stakeholders fear the ripple effects may deepen economic pressures on businesses and consumers nationwide.

Dangote Refinery, in a statement, said the move was necessary to avoid a mismatch between its sales proceeds and our crude oil purchase obligations, which are currently denominated in US dollars.

“To date, our sales of petroleum products in Naira have exceeded the value of naira-denominated crude we have received. As a result, we must temporarily adjust our sales currency to align with our crude procurement currency.

“Our attention has also been drawn to reports on the internet claiming that we are stopping loading due to an incident of ticketing fraud. This is malicious falsehood. Our systems are robust and we have had no fraud issues.

“We remain committed to serving the Nigerian market efficiently and sustainably. As soon as we receive an allocation of naira-denominated crude cargoes from NNPC, we will promptly resume petroleum product sales in naira. We appreciate your understanding and cooperation during this period”, the company explained.

Commenting on the development, the National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Mr. Billy Gillis-Harry, expressed rude shock at the development, saying the decision by Dangote will impact petroleum products  availability, energy security and pricing.

He said the coming onboard of the Dangote Refinery has been able to stabilise the supply chain while guaranteeing access to product.

However, he warned the suspension of petroleum products into the sldomestic market by Dangote should not be an excuse for importers of products to profiteer by putting the country in a disadvantage condition.