LAGOS, Nigeria – The Nigerian downstream petroleum sector has been thrown into turmoil following Dangote Refinery’s decision to temporarily suspend the sale of refined petroleum products in the naira.
The move has triggered a sharp increase in depot prices, with petrol now selling for N875 per litre, up from less than N850 per litre earlier this week.
The price hike was observed across multiple depots on Thursday, with Parker Depot increasing its loading price to N875 per litre from N852 earlier in the day.
Similarly, Matrix Warri raised its price by N22 to N875 per litre, while Zamson Depot and Rainoil Depot adjusted their rates from N853 to N875 per litre.
Pinnacle Warri and Sobaz also increased their prices to N875 per litre from N854 and N870, respectively.
This development marks a reversal of the trend seen earlier this year, when Nigerians enjoyed three consecutive petrol price reductions by Dangote Refinery.
The latest price surge is expected to impact consumers at the pump, further straining household budgets amid rising inflation.
In a statement issued on Wednesday, March 19, 2025, the Dangote Group explained that the suspension of naira-denominated sales was necessitated by a mismatch between sales proceeds and crude oil purchase obligations, which are denominated in US dollars.
“Dear valued customers, we wish to inform you that the Dangote Petroleum Refinery has temporarily halted the sale of petroleum products in naira,” the statement read.
“This decision is necessary to avoid a mismatch between our sales proceeds and our crude oil purchase obligations, which are currently denominated in US dollars.”
The refinery clarified that its naira-denominated sales had exceeded the value of naira-denominated crude oil received, prompting the temporary adjustment.
“As soon as we receive an allocation of naira-denominated crude cargoes from NNPC, we will promptly resume petroleum product sales in naira,” the statement added.
The refinery also dismissed online claims suggesting that it had halted loading operations due to an incident involving ticketing fraud.
“This is a malicious falsehood. Our systems are robust, and we have had no fraud issues,” the statement said.
“We remain committed to serving the Nigerian market efficiently and sustainably.”
The suspension of naira sales by Dangote Refinery has raised concerns about the stability of fuel supply and pricing in Nigeria.
Industry analysts warn that the price increase could exacerbate inflationary pressures and further strain the economy.
The Nigerian National Petroleum Corporation (NNPC) has yet to comment on the refinery’s request for naira-denominated crude allocations.
