Dangote blames importers for petrol sales policy reversal

The Dangote Petroleum Refinery has reverted to selling petrol in Nigerian naira, a move prompted by alleged stock withholding by importers seeking higher prices. A management official, speaking anonymously, stated that the decision was made in the nation's interest to avert fuel scarcity and price surges.

This reversal follows a brief period where the refinery priced petrol in U.S. dollars, a decision that caused significant anxiety within Nigeria's downstream petroleum sector and prompted government intervention. Independent marketers had suspended fuel loading from the refinery, citing difficulties in sourcing foreign exchange for dollar-denominated transactions.

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We took a decision in the interest of the country to start selling Premium Motor Spirit in naira, since we saw that the importers were holding back their goods, looking for a price rise.

The refinery had previously defended its dollar pricing, explaining it was necessary because it was no longer receiving sufficient crude oil under the government's naira-for-crude initiative and had to procure additional crude on the international market using dollars.

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We are still in talks with the government, but I hope that they will be sincere.

The official emphasized that the issue of crude oil shortage has not been resolved, and the refinery remains engaged in discussions with the federal government. There is hope for a sincere agreement once talks conclude. The official also expressed regret over a perceived preference within some government circles for exporting crude oil and importing refined products.

Before the Dangote refinery commenced operations, Nigeria, despite being a major oil producer, heavily relied on imported petrol due to the non-functionality of its domestic refineries. This dependence left the populace vulnerable to the whims of fuel importers.

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As you know, they like to sell the crude to the traders outside the country and import the petroleum products.