Impending Increase in Fuel Prices as Dangote Refinery Halts Naira Sales of Petroleum Products

Impending Increase in Fuel Prices as Dangote Refinery Halts Naira Sales of Petroleum Products

The recent reduction in the price of Premium Motor Spirit (PMS) popularly called petrol may be reversed as Dangote Petroleum Refinery has announced the temporary suspension of the sale of petroleum products in naira.

The refinery made the announcement in a statement titled Temporary Suspension Of Sales Of Petroleum Products In Naira” released on Wednesday, March 19, 2025.

This is likely to lead to an increase in the price of the product based on the fluctuating exchange rate.

In the statement, the refinery said the decision to halt sales in naira was “necessary to avoid a mismatch between our sales proceeds and our crude oil purchase obligations, which are currently denominated in U.S. dollars.

“To date, our sales of petroleum products in Naira have exceeded the value of Naira-denominated crude we have received,” the statement reads.

“As a result, we must temporarily adjust our sales currency to align with our crude procurement currency.”

The refinery also debunked claims that the temporary suspension was due to ticketing frauds, saying they are “malicious”.

The firm, however, assured that sales would resume in naira as soon as they receive crude supply in naira from the Nigerian National Petroleum Company (NNPC) Limited.

“Our attention has also been drawn to reports on the internet claiming that we are stopping loading due to an incident of ticketing fraud,” Dangote refinery said.

“This is a 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.”

By Babajide Okeowo