Fears of fuel price hike as Dangote Refinery stops petrol sales in Naira
The implication is that discussion with NNPCL may have hit the rocks
There is indication of a fresh premium motor spirit price hike as Dangote Refinery announced the temporary suspension of the sales of petroleum products in Naira.
There is indication of a fresh premium motor spirit price hike as Dangote Refinery announced the temporary suspension of the sales of petroleum products in Naira.The company disclosed this in a statement on Wednesday on its X account.
The 650,000 barrels per day refinery said the decision to halt the deal was necessary to avoid a mismatch between its sales proceeds and crude purchase obligations.
Dangote Refinery reduces petrol price to N825 per litre
The refinery said its sales of petroleum products in Naira have exceeded the value of received Naira-denominated crude.
The company, however, dismissed reports that it has stopped loading due to an incident of ticketing fraud.
“Dear Valued Customers,
“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.
“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.
“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 development sparked anxiety with the country’s downstream oil sector.
The implication is that discussion with Nigerian National Petroleum Company Limited may have hit the rocks. This may impact the ex-depot of petroleum products Dangote Refinery sells to petroleum marketers, which currently stands at N815 per litre.
Earlier, Nigerian National Petroleum Company Limited recently confirmed its discussion with Dangote Refinery for a fresh contract on a Naira-for-crude deal.
Recall that the federal government kicked off the Naira-for-crude deal sell with Dankgte Refinery in October last year.
While the Naira-for-crude deal lasted, Dangote refinery sold to Nigerian marketers in naira because it buys crude in the local currency through NNPCL.
In the past few months, the retail price of premium motor spirit fell to at least N860 per litre as a price war between Dangote Refinery and NNPCL kicked off.
Credit: Daily Post
