Dangote Petroleum Refinery has announced a temporary suspension of the sale of petroleum products in Naira, citing a mismatch between its sales proceeds and crude oil purchase obligations, which are denominated in US dollars.
According to the company, its sales of petroleum products in Naira have exceeded the value of Naira-denominated crude received, necessitating a temporary adjustment in sales currency to align with crude procurement currency.
Dangote Petroleum Refinery denied reports of stopping loading due to ticketing fraud, describing them as “malicious falsehood.” The company assured that its systems are robust and that there have been no fraud issues.
The refinery expressed commitment to serving the Nigerian market efficiently and sustainably. Sales of petroleum products in Naira are expected to resume once the company receives an allocation of Naira-denominated crude cargoes from the Nigerian National Petroleum Corporation (NNPC).
The impact on fuel prices due to Dangote Petroleum Refinery’s temporary halt of sales in Naira is uncertain for now.
Fuel prices are determined by various factors, including the global price of crude oil, supply and demand, refinery production and capacity, distribution costs, taxes, and the margin fuel retailers decide to take.
When a major player like Dangote Petroleum Refinery adjusts its sales strategy, it can have a ripple effect on the market. However, the extent of the impact depends on various market dynamics.
In general, fluctuations in fuel prices can have far-reaching consequences, including higher fuel prices leading to increased transportation costs, affecting businesses and consumers alike.
To better understand the specific impact of Dangote Petroleum Refinery’s decision on fuel prices, market trends and adjustments will have to be observed in the coming days.
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