Fuel price hike looms as Dangote suspends petrol sales in naira

Abdullateef Fowewe

Dangote Petroleum Refinery has announced a temporary halt in the sale of petroleum products in Naira, citing a need to align sales with crude oil purchase obligations, which are currently in U.S. dollars.

Dangote in a statement on Wednesday, said the refinery’s Naira-denominated sales have exceeded the value of Naira-denominated crude received.

The statement said partly, “We wish to inform you that, Dangote Petroleum Refinery has temporarily halted the sale of petroleum products in Naira. This decision is 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. As a result, we must temporarily adjust our sales currency to align with our crude procurement currency.”

However, Dangote noted that the suspension is not due to any fraud issues, contrary to online reports, stressing that sales will resume once Nigerian National Petroleum Corporation allocates Naira-denominated crude cargoes to the refinery.

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

“We appreciate your understanding and cooperation during this period,” the statement added.