Dangote Petroleum Refinery has announced a temporary suspension of petrol sales in naira, citing the need to align its crude oil purchase obligations, which are currently in U.S. dollars.
In a notice sent to petroleum marketers on Wednesday, the refinery explained that the decision was necessary due to a mismatch between its sales proceeds and crude procurement costs.
The company stated, “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.”
The company explained that the value of naira-based petroleum sales had exceeded the naira-denominated crude oil it had received so far. As a result, it had to adjust its sales currency to match its crude procurement currency.
Dangote Refinery also addressed rumors circulating online that it had stopped loading products due to an alleged ticketing fraud.
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The statement read, “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 malicious falsehood. Our systems are robust, and we have had no fraud issues.”
Despite the temporary halt in naira-based transactions, the refinery assured Nigerians that it remained dedicated to serving the country efficiently.
The company stated, “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.”
The decision is expected to impact petroleum marketers and fuel stations that rely on Dangote Refinery’s products. Industry experts believe this move could affect fuel prices and supply in the short term, as marketers may need to source dollars to continue transactions.
For now, Dangote Refinery has urged marketers and the public to remain patient, assuring them that the situation will be resolved as soon as possible.