The Dangote Petroleum Refinery has temporarily suspended the sale of petroleum products in naira, following the collapse of its naira-for-crude oil agreement with the Nigerian National Petroleum Company Limited (NNPCL). The suspension, announced on Wednesday, March, 20, 2025 has sparked an instant hike in the loading price of petrol at private depots in Lagos which rose from N826 to as high as N900 per litre, thereby raising fears of a nationwide fuel price spike.
The refinery mentioned the need to align sales proceeds with crude procurement costs—currently denominated in U.S. dollars—as the main reason for the suspension. Industry experts cautioned that this move could increase pressure on the foreign exchange market as marketers would now need to source dollars to purchase fuel. Insiders blame the deal’s breakdown on NNPCL’s heavy forward sales of crude oil to offset international loans, leaving insufficient supply for local refiners.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) and other stakeholders have urged the government to reestablish the naira-for-crude arrangement to prevent further pressure on fuel prices and the naira. Meanwhile, private depots have already begun adjusting prices upward, with some suspending sales entirely—prompting concerns that pump prices could soar to N1,000 per litre if a resolution is not reached promptly.
