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The Independent Petroleum Marketers Association of Nigeria (IPMAN) and Crude Oil Refiners Association of Nigeria (CORAN) have warned that Nigerians may soon face another increase in petrol prices amid reports that the Dangote Petroleum Refinery is considering the sale of refined petroleum products in dollars.
The Public Relations Officer of IPMAN, Mr. Chukwudi Akadike, in an interview with Daily Sun, said although the association had yet to receive an official communication from the refinery, such a move would not come as a surprise given the mounting pressures confronting its operations.
On March 19, 2025, Dangote Refinery announced that it had temporarily halted the sale of petroleum products in Naira.
The decision, it said, was necessary to avoid a mismatch between its sales proceeds and crude oil purchase obligations, which are currently denominated in U.S. dollars.
Idoko said the inadequate crude supply under the federal government’s naira-for-crude initiative, rising geopolitical tensions in the Middle East, particularly around the Strait of Hormuz, and the recent approval granted to marketers to resume fuel imports have combined to increase the refinery’s foreign exchange requirements.
“If the refinery eventually returns to dollar sales, it will certainly have implications for the downstream market. Marketers will have to source dollars to buy products, and those costs will ultimately reflect at the pump,” Akadike said.
He noted that global crude prices have remained volatile following renewed hostilities involving Iran, while uncertainties surrounding crude supply to domestic refiners have continued to strain operations.
Akadike said marketers were closely monitoring developments, adding that any disruption to the current pricing arrangement could reverse the relative stability witnessed in the downstream petroleum market in recent months.
“The industry is watching the situation carefully because whatever affects the refinery’s cost of operations will eventually affect product pricing. If products are sold in dollars, higher petrol prices are almost inevitable,” he added.
He, however, stressed that the issue goes beyond Dangote Refinery and reflects broader challenges affecting Nigeria’s refining sector, particularly access to crude oil.
Also reacting, the Publicity Secretary of the Crude Oil Refiners Association of Nigeria (CORAN), Mr. Iche Idoko, described the reported move as a reflection of the unresolved challenges surrounding domestic crude supply rather than a mere commercial decision.
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According to Idoko, if the reports are confirmed, they would underscore the need for the Federal Government to urgently address the shortcomings in the implementation of the crude-for-naira policy.
“The issue is not whether Dangote wants to sell in dollars or naira. The real issue is whether local refineries are getting sufficient crude under the crude-for-naira framework to sustain operations,” he said.
Idoko said conversations within the industry indicate that domestic refiners continue to struggle with inconsistent crude allocations, forcing them to explore alternatives that require access to foreign exchange.
He also linked the reported development to renewed tensions in the Middle East, which have increased financing costs for refiners, as well as the Federal Government’s recent approval for marketers to import petroleum products.
According to him, the combination of these factors has created fresh commercial pressure on domestic refining.
Idoko urged the Minister of State for Petroleum Resources (Oil) to immediately convene stakeholders, including crude producers, refiners and regulators, to resolve the lingering crude supply challenges.
“We have consistently maintained that the minister should lead discussions on this matter. It is not something that should be allowed to linger because it has implications for the entire downstream sector and for consumers,” he said.
He warned that allowing domestic refiners to resort to dollar-denominated sales would undermine the objectives of the crude-for-naira initiative, which was introduced to reduce demand for foreign exchange, support the naira and moderate domestic fuel prices.
“If marketers begin buying products in dollars, they will naturally pass the foreign exchange costs to consumers. That means another round of petrol price increases is likely unless the government urgently addresses crude supply to local refineries,” Idoko said.
“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,”
“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,” Dangote had said in the March 2025 statement.
