…This shift may affect local petroleum product pricing and availability, as transactions move to a dollar-denominated framework.
THUR MARCH 20 2025-theGBJournal| Dangote Petroleum Refinery has temporarily halted the sale of petroleum products in Naira, the refinery management announced Wednesday.
Dangote in a statement said the decision is necessary to avoid a mismatch between our sales proceeds and our crude oil purchase obligations, which are currently denominated in U.S. dollars.
This implies that the refinery has adjusted its sales currency to align with its procurement currency, to ensure uninterrupted operations and financial stability.
This shift may affect local petroleum product pricing and availability, as transactions move to a dollar-denominated framework.
The refinery up until now sold its petroleum products within the country in naira. This arrangement was feasible when there was a direct exchange mechanism between naira and crude oil supplies.
However, the sales of petroleum products in Naira, according to Dangote Refinery, 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.”
Meanwhile, the Refinery has dismissed reports claiming that they are stopping loading due to an incident of ticketing fraud.
”This is malicious falsehood. Our systems are robust and we have had no fraud issues,” the refinery said, and expressed commitment 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.”
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