The suspension of the sale of petroleum products in naira by the Dangote Petroleum Refinery has prompted concerns among marketers about potential price increases for gasoline. Following this announcement, some filling stations have begun stockpiling Premium Motor Spirit (PMS), anticipating that petrol prices will rise due to the Federal Government’s cessation of crude oil sales to the refinery in local currency.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has criticized depot owners for stockpiling fuel, warning that this could lead to significant losses if prices do not rise as expected. The refinery’s decision to halt naira sales comes amid failed negotiations regarding the naira-for-crude deal with the Nigerian National Petroleum Company Limited (NNPCL).
Since the announcement, the cost of loading petrol at private depots has surged to approximately N900 per litre, up from N850. IPMAN’s National Publicity Secretary, Chinedu Ukadike, condemned depot owners for exploiting the situation for profit and advised marketers against panic buying.
The Dangote refinery cited a mismatch between its sales in naira and its crude oil purchase obligations, which are now in US dollars. This has left marketers uncertain about future pricing and supply, as the Federal Government has remained silent on the issue since the announcement.
As negotiations between the Federal Government and Dangote resume, stakeholders are eager for clarity on the continuation of the naira-for-crude deal. Experts warn that the halt in naira sales could adversely affect the foreign exchange market and increase prices for consumers.
