Petroleum marketers and depot owners in Nigeria have accused Dangote Refinery of trying to pressure the government into continuing the Naira-for-crude sales deal. This comes at a time when there is uncertainty about the price of premium motor spirit (PMS), also known as petrol.
The Nigerian government had planned a meeting on Monday to discuss the Naira-for-crude arrangement, but it was postponed.
According to a source, the meeting did not hold because the Nigerian Midstream and Downstream Petroleum Regulatory Commission (NMDPRA) failed to submit a report on crude oil availability and the overall situation.
Meanwhile, a senior official at the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) claimed that Dangote Refinery’s decision to stop selling petroleum products in Naira was an attempt to create public anger against the government.
He explained that before the Naira-for-crude deal, marketers had always bought imported fuel in dollars. Therefore, purchasing fuel from Dangote Refinery in dollars should not cause any major cost differences or disruptions. He alleged that the refinery was using this move to pressure the government into a new Naira-for-crude agreement.
Last week, Dangote Refinery stopped selling its products in Naira, saying it wanted to prevent financial mismatches between its sales revenue and crude purchase costs. The refinery has not yet announced new prices for its petroleum products, but when it does, they will reflect its updated pricing policy.
Some fuel marketers have already stated that if Dangote Refinery’s new prices are too high, they will look for alternatives. Recently, the refinery reduced its ex-depot price of petrol from ₦825 per litre to ₦815, when the Naira-for-crude deal was still in place.
Since Dangote Refinery declared its intention to sell petrol in dollars, many Nigerians fear that fuel prices may increase further. As of now, petrol from NNPC and Dangote Refinery sells between ₦860 and ₦880 per litre in Lagos and Abuja, while independent marketers sell it for ₦920 to ₦950 per litre, depending on location.
Olufemi Adewole, an executive director at DAPPMAN, warned that the Naira-for-crude system could harm Nigeria’s economy. He argued that the global oil market operates in U.S. dollars, which provides stability. If Nigeria continues with the policy, it may discourage foreign investment and trade partnerships.
With Dangote Refinery’s recent actions and the uncertainty surrounding the fuel price, Nigerians remain concerned about the potential impact on the economy and daily living costs.
