Nigeria may soon face another increase in fuel prices if reports that the Dangote Petroleum Refinery is considering the sale of refined petroleum products in dollars is real. This is the warning from the Independent Petroleum Marketers Association of Nigeria (IPMAN) and Crude Oil Refiners Association of Nigeria (CORAN) during an interview on Tuesday.
Answering questions during the interview by Daily Sun, IPMAN public relations officer, Mr. Chukwudi Akadike said although the association had yet to receive an official communication from the refinery, but that such a move would not come as a surprise given the mounting pressures on its operations.
Dangote Refinery on March 19, 2025, announced that it had temporarily halted the sale of petroleum products in naira, as a necessary to avoid a mismatch between its sales proceeds and crude oil purchase obligations, which are currently denominated in US dollars.
Akadike noted that 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 added 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.
The IPMAN spokesman 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.
