BusinessEconomyNewsNigeriaFuel Prices Surge as Dangote Refinery Suspends Sales in Naira

https://www.westafricanpilotnews.com/wp-content/uploads/2021/01/DPR-Pump-1-30-21-1280x853.jpg

Nigerians are bracing for another fuel price hike after Dangote Petroleum Refinery temporarily halted the sale of refined petroleum products in naira, citing currency mismatches in crude oil purchases.

The refinery announced that its sales in naira had surpassed the value of naira-denominated crude received, making it necessary to suspend local currency transactions.

“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,” Dangote Refinery stated.

“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,” the refinery added.

The announcement has already led to price hikes at depots, with petrol now selling at ₦875 per litre, up from less than ₦850.

As of Thursday noon, Parker Depot raised its loading price from ₦852 to ₦875 per litre. Matrix Warri increased prices by ₦22, from ₦852 to ₦875 per litre, while Zamson, Rainoil, Pinnacle Warri, and Sobaz depots also adjusted their rates to ₦875 per litre.

Nigerians, who had enjoyed three price reductions this year, now face an imminent increase in pump prices.

Dangote Refinery noted its commitment to the Nigerian market and said sales in naira would resume once naira-denominated crude allocations are received from NNPC.

By Ezinwanne Onwuka (Senior Reporter)

Leave a Reply

Your email address will not be published. Required fields are marked *

WP2Social Auto Publish Powered By : XYZScripts.com