The Nigerian downstream sector has recorded yet another quick shift following Dangote Refinery’s latest decision to temporarily halt the supply of refined petroleum products in the country’s local currency to marketers.
This development has prompted a sharp increase in depot prices, with petrol now selling for N875 per litre, according to Petroleum Price, up from less than N850 before the announcement.
Data showed petrol price movements at loading depots on Thursday noon that Parker depot increased its loading price to N875 per litre from N852 per litre sold earlier in the day.
Matrix Warri effected an increase of N22 from N852 to N875 per litre, and Zamson Depot increased its price from N853 to N875 per litre. Rainoil depot made the same price change from N853 to N875 per litre while Pinnacle Warri and Sobaz changed their prices to N875 per litre from N854 and N870, respectively.
This development means Nigerians, who have experienced three petrol price reductions by Dangote Refinery since January, will be bracing for higher prices at the pump.
On Wednesday, the Dangote Group said the suspension of petroleum products’ sale in naira is temporary, citing a mismatch in sales proceeds and crude oil purchase obligations, which are currently denominated in US dollars.
The statement read: “Dear valued customers, we wish to inform you that the Dangote Petroleum Refinery has temporarily halted the sale of petroleum products in naira. This decision is necessary to avoid a mismatch between our sales proceeds and our crude oil purchase obligations, which are currently denominated in US dollars.
“To date, our sales of petroleum products in naira have exceeded the value of naira-denominated crude we have received. As a result, we must temporarily adjust our sales currency to align with our crude procurement currency.”
Also, the refinery has refuted online claims suggesting it halted loading operations due to an incident involving ticketing fraud.
“This is a malicious falsehood. Our systems are robust and we have had no fraud issues. We remain committed to serving the Nigerian market efficiently and sustainably. As soon as we receive an allocation of naira-denominated crude cargoes from NNPC, we will promptly resume petroleum product sales in naira,” the statement said.
News Express
