The Dangote Petroleum Refinery has announced the resumption of petrol sales in naira, effective immediately.
The company in a public notice to its customers, titled “Resumption of DPRP PMS Naira Sales” said the decision comes after intervention by the Naira for Crude Technical Committee chairman.
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The refinery informed its customers that they can now place orders for petrol in naira for both self-collection and free delivery.
“Dear valued customer, following the intervention of the Naira for Crude Technical committee chairman, we are pleased to inform you of the resumption of PMS Sales in Naira commencing immediately.
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“You may kindly proceed to place your orders in Naira for both self collection and free delivery of PMS to the earlier advised locations across the country. Thank you for your continued patronage,” it said.
The refinery had earlier announced the suspension of petrol sales in naira, effective 28 September.
According to the refinery, the initial decision was made due to the refinery selling petroleum products in excess of its Naira-Crude allocations, making it unsustainable to continue petrol sales in naira.
Resumption implications
The resumption of naira sales for petrol is expected to provide relief to customers and stakeholders who were affected by the earlier suspension.
Earlier on Saturday, the Independent Petroleum Marketers Association of Nigeria (IPMAN) told PREMIUM TIMES that the Dangote Refinery suspension of petrol sales in naira would lead to a significant increase in petrol prices in Nigeria.
“Actually, just the way you see it, we have seen it. Yes, it will definitely affect the price. If he is selling through dollars, there will be an increase in price,” the IPMAN chairman said.
Policy framework
In July last year, the Federal Executive Council (FEC) directed the Nigerian National Petroleum Company Limited (NNPC Ltd) to engage Dangote refinery and other local refineries to resolve the dispute over the sale of crude oil to them.
The FEC, presided over by President Bola Tinubu, also directed that crude oil sales to the refineries be made in naira and that the refineries, located in Nigeria, sell their refined products to the Nigerian market in naira.
Last October, the Nigerian government said it officially commenced selling crude oil and refined petroleum products in Naira.
On 10 March, the NNPC Ltd said the contract for the sale of crude oil in Naira was structured as a six-month agreement, subject to availability, and expires at the end of March 2025. At the time, the NNPC said discussions were currently ongoing towards emplacing a new contract.
Reacting to reports alleging unilateral termination of the crude oil sale agreement between NNPC and Dangote refinery, the Nigerian government on 11 March said the policy framework enabling the sale of crude oil in naira for domestic refining remains in force.
Previous suspension
On 19 March, the Dangote refinery announced the temporary suspension of sale of petroleum products in naira.
The refinery said the decision was necessary to avoid a mismatch between its sales proceeds and its crude oil purchase obligations, which were denominated in dollars.
READ ALSO: UPDATED: Dangote responds as PENGASSAN threatens major disruption of refinery
In April, at a meeting between a presidential delegation and officials of the Dangote refinery, the NNPC Ltd and other parties agreed to extend the policy of selling Nigerian crude to local refineries in naira.
The meeting also resolved that the policy, including the sale of the products obtained from such crude in naira, would not have a terminal date.
“The Crude and Refined Product Sales in Naira initiative is not a temporary or time-bound intervention, but a key policy directive designed to support sustainable local refining, bolster energy security, and reduce reliance on foreign exchange in the domestic petroleum market,” the finance ministry said at the time.
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