The suspension of naira sales by the Dangote Petroleum Refinery has triggered fuel price speculation, with filling stations stockpiling Premium Motor Spirit (PMS) in anticipation of a price hike. The decision follows the Federal Government’s failure to sustain the naira-for-crude policy, which allowed Dangote Refinery to purchase crude oil in local currency.
Last week, the refinery announced a temporary halt in naira transactions, citing a mismatch between sales proceeds and crude purchase obligations, which are currently denominated in US dollars. This immediately caused an increase in depot prices, with petrol loading costs in Lagos surging to about ₦900 per litre, up from ₦850 per litre before the announcement.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has cautioned filling station owners against panic buying, warning that they could face heavy losses if the Dangote Refinery later reduces fuel prices. IPMAN’s National Publicity Secretary, Chinedu Ukadike, condemned private depot owners for taking advantage of the situation by increasing prices, labeling the move as detrimental to the economy.
“Some marketers are stockpiling PMS, expecting the price to rise further. But this issue will be resolved, and they may suffer losses,” Ukadike warned.
Meanwhile, the Federal Government and Dangote Refinery have resumed talks to resolve the naira-for-crude dispute. The Technical Sub-Committee on the Naira-for-Crude Policy is set to reconvene to review options for restoring local currency transactions.
Industry experts have raised concerns that the halt in naira sales could worsen Nigeria’s foreign exchange crisis, as fuel importers will need more US dollars to purchase petroleum products. Additionally, sources have revealed that the Nigerian National Petroleum Company Limited (NNPCL) has committed large volumes of yet-to-be-produced crude to international loans, limiting its ability to supply the domestic market.
For now, the fuel market remains on edge, with stakeholders closely monitoring developments between the Federal Government and the Dangote Refinery.
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