
Dangote Refinery
Dangote Refinery’s Shift to Dollar Sales Sparks Fuel Price, Supply Concerns

Nigeria’s oil industry is facing turmoil as the Dangote Refinery temporarily suspends petroleum product sales in Naira, opting instead for dollar transactions.
The move, intended to align with the currency used for crude oil purchases, has raised fears of rising fuel costs, hoarding, and supply disruptions.
The refinery has paused Naira transactions, requiring marketers to buy petroleum products in US dollars, though exports continue.
The company stated that dollar sales are necessary since crude oil—its primary feedstock—is purchased in dollars.
Fuel retailers and distributors, many of whom depend on the refinery, are worried about the financial sstrain f securing dollars for purchases.
The shift could drive up pump prices as marketers factor in exchange rate fluctuations and dollar scarcity.
Uncertainty over future pricing has sparked concerns that some dealers may stockpile fuel, worsening supply shortages.
The Nigerian National Petroleum Company Limited (NNPCL) is in talks with Dangote for a Naira-based crude supply deal, but discussions have yet to yield results.
The situation has heightened anxiety in the downstream sector, with stakeholders fearing disruptions in fuel availability and affordability.
Some industry players warn that Dangote’s dominance in refining and distribution could edge out smaller operators, creating an unhealthy monopoly.
The refinery’s policy shift has intensified debates over Nigeria’s fuel pricing structure, with calls for government intervention to stabilize the market and protect consumers and independent businesses.
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