Dangote blames importers for petrol sales policy reversal

Dangote Petroleum Refinery reverted to the sale of petrol in naira because importers were allegedly holding back their stocks, an official of the company has revealed. An official of the company, who spoke on condition of anonymity, stated that the decision of the refinery to halt dollar-denominated fuel sales was not because the issue of crude oil shortage had been resolved, but was taken in the interest of the country to prevent fuel scarcity and further price increases. According to him, importers were deliberately holding back their stocks in anticipation of higher fuel prices.

The official stated, “We took a decision in the interest of the country to start selling Premium Motor Spirit in naira, since we saw that the importers were holding back their goods, looking for a price rise,”. The refinery recently resumed the sale of petrol in naira, ending its brief dollar-denominated pricing regime. A notice issued by the commercial department of the refinery on Wednesday informed customers that the gantry price of petrol was N1,215 per litre, while the coastal price was N1,602,495 per metric tonne.

The development marked a reversal of the decision of the refinery to sell petrol in United States dollars, a move that triggered anxiety across the downstream petroleum sector and prompted emergency intervention by the Federal Government. Independent marketers had earlier suspended the loading of petrol from the refinery after it commenced dollar-denominated sales, saying they could not source the foreign exchange required for the transactions.

The refinery had defended the decision, explaining that it was compelled to adopt dollar sales because it was no longer receiving adequate crude oil under the naira-for-crude initiative of the Federal Government and had to source additional crude from the international market in dollars. Speaking further, the source disclosed that the Dangote Group was still in talks with the Federal Government, expressing hope that the government would act in good faith once an agreement was reached. The source noted, “We are still in talks with the government, but I hope that they will be sincere,”.

The official also expressed regret that some individuals in government preferred exporting crude oil and importing refined petroleum products into the country, stating, “As you know, they like to sell the crude to the traders outside the country and import the petroleum products,”. Before the Dangote refinery began operations in 2024, Nigeria had for years depended on imported petrol despite being one of the leading oil-producing countries in Africa. The refineries in Port Harcourt, Warri, and Kaduna were non-functional, leaving the country at the mercy of fuel importers during a period marked by persistent fuel shortages and a controversial fuel subsidy regime.

With the commencement of operations at the Dangote refinery, the downstream sector became more decentralised, while the Nigerian National Petroleum Company Limited ended the payment of implicit fuel subsidies. Some depot owners had last week raised petrol gantry prices to as high as N1,275 per litre after the refinery temporarily halted loading at its gantry. Following the announcement of a gantry price of N1,215 per litre by the refinery, many depots reduced their prices to remain competitive, with depot prices ranging between N1,215 and N1,220 per litre on Sunday.

Similarly, pump prices of petrol are currently hovering between N1,260 and N1,300 per litre, depending on the location. The rise in petrol prices resulted from renewed tensions in the Middle East, which pushed up global oil prices. Before closing at $96 per barrel on Friday, global oil prices climbed above $100 per barrel on Thursday for the first time in nearly two months after escalating attacks on commercial shipping in the Red Sea heightened fears of prolonged supply disruptions across key global energy routes. The latest price surge could have mixed implications for Nigeria, as higher crude prices may increase export earnings and boost government revenues, while simultaneously raising the cost of imported refined petroleum products, worsening inflationary pressures, and increasing the burden on consumers if domestic supply remains insufficient.