Dangote Petroleum Refinery has resumed the sale of Premium Motor Spirit, popularly known as petrol, in United States dollars, marking a major shift in its pricing policy that could have far reaching implications for Nigeria’s downstream petroleum sector. The development follows growing concerns over crude supply arrangements and foreign exchange pressures, with industry stakeholders warning that the move could eventually influence pump prices across the country.
Under the new pricing framework, the refinery has fixed the ex depot price of petrol at $0.779 per litre, while diesel and aviation fuel will also be sold using dollar denominated pricing. The company explained that the adjustment reflects prevailing market realities and the increasing cost of sourcing crude oil and sustaining refinery operations.
The decision is expected to have a significant impact on petroleum marketers, many of whom will now require access to foreign currency to purchase products from the refinery. Analysts say this could increase operating costs for fuel distributors and ultimately affect retail petrol prices if the exchange rate remains volatile. Industry experts have also linked the policy to mounting pressure on Nigeria’s foreign exchange market and the challenges surrounding the Federal Government’s crude supply arrangements. ..READ THE FULL ARTICLE HERE .
Reacting to the development, the Independent Petroleum Marketers Association of Nigeria and the Crude Oil Refiners Association of Nigeria expressed concerns that Nigerians may face another round of fuel price increases if marketers are compelled to source dollars before buying petrol. They argued that the new payment model could add further pressure to an already fragile economy where transportation and energy costs continue to rise.
The latest policy marks another significant chapter in the operations of Africa’s largest refinery, which has become a major supplier of refined petroleum products within Nigeria and across the continent. As the market adjusts to the new pricing structure, consumers, marketers and policymakers will be closely watching its effect on fuel availability, pump prices and the broader Nigerian economy in the coming weeks.
