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

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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.

About The Author

Dele Fashomi

Dele Fashomi, seasoned journalist and communication teacher, is a holder of Master of Arts degree in Communication and Language Arts from the University of Ibadan in 1992/93.

Earlier, he had bagged a Bachelor degree from the same university in 1984, after which he proceeded to the Nigerian Institute of Journalism, Lagos, in 1990, for a postgraduate diploma in Journalism.

He had done many courses in communication, including the EU-BBC Editing Course in 2002.

Mr. Fashomi combines effectively the practice, research and teaching of communication. And to date, he has published two academic works in communication: Issues in Communication Technology and Policy (2010) and Economic and Social Issues in Advertising and PR (2013).

He had his first break in the Nigerian media in Concord Newspapers in 1990 and today, he has over two and half decades experience earned in several newspapers.

He has been part of many start-ups, such as The Republic (1987), The Comet (1999), The Anchor 2001 – 2002; Sun Newspapers (2003); Westerner newsmagazine (2005 – 2010) as Editor; National Life (2011) as Sunday Editor, and Newswatch Newspapers (2012- 2016) as Daily Editor.

Dele Fashomi is now the Publisher/Editor-in-Chief of Newstide247.com newspaper online, which he started in July 2015. He is also into biography writing, with many books in his trail, some of which he wrote alone and one he co- authored with his mentor, Mr Dare Babarinsa, entitled: Olabiyi Durojaiye – DARE TO BE DiFFERENT. He also guided and collaborated with Pa Olatunji Odusanya in writing his autobiography – AGAINST ALL ODDS. There are many other books in the works under his pen.

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