Faced with shortage of local crude supply, Dangote Petroleum Refinery and Petrochemicals has suspended the sale of petrol and other petroleum products in Naira.
The company stated that the temporary shift was necessary due to its crude oil purchase obligations, which are now denominated in US dollars.
In a statement on Wednesday, the refinery’s management explained that it had been selling products in Naira while its crude procurement was dollar-based.
Over time, the sales in Naira exceeded the value of Naira-denominated crude it had received, leading to a financial mismatch. To prevent further losses, the company opted to align its sales currency with its procurement currency.
The company assured stakeholders that the suspension was only temporary. It emphasized that once it secures Naira-denominated crude allocations from the Nigerian National Petroleum Company Limited, NNPCL, sales in Naira will resume.
“We remain committed to serving the Nigerian market efficiently and sustainably,” the statement read.
Dangote Refinery also dismissed speculations linking the suspension to an alleged incident of ticketing fraud.
The company described the reports as “malicious falsehood,” stressing that its systems remain robust and free from fraud-related issues. It urged the public to disregard misinformation circulating on the internet.
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Meanwhile, the NNPCL confirmed that its current crude supply contract with Dangote Refinery is set to expire in March 2025. The contract, initially structured as a six-month agreement, was based on the availability of crude oil. Discussions are ongoing to establish a new deal that will ensure continuous supply.
Since the refinery began operations in 2023, NNPCL has provided over 84 million barrels of crude oil, with 48 million barrels supplied since October 2024 alone. The corporation reaffirmed its commitment to local refining, stating that it will continue to supply crude based on mutually agreed terms and conditions.
Industry analysts believe that Dangote Refinery’s decision reflects the broader challenges facing Nigeria’s oil and gas sector, particularly regarding foreign exchange fluctuations and crude supply agreements.
With the refinery being a key player in domestic fuel production, the outcome of its negotiations with NNPCL will be closely watched.
For now, fuel marketers and consumers will have to navigate the temporary disruption, awaiting further developments on crude supply arrangements and the refinery’s sales policies.
Crediblenewsng.com
