Nigerians are bracing for a potential surge in fuel prices as the Dangote Petroleum Refinery announces a halt on petrol sales in naira. The decision, effective from September 28, 2025, comes as the refinery cites exhaustion of its crude-for-naira allocation.
According to a notice issued to customers, the refinery has been selling petroleum products beyond its allocated naira-crude limits, making it unsustainable to continue selling Premium Motor Spirit (PMS) in naira. The notice, signed by the Group Commercial Operations of Dangote Petroleum Refinery & Petrochemicals, informed customers that the suspension of naira sales for PMS would commence on the specified date.
The refinery has assured customers that it will provide updates on the resumption of supply once the situation is resolved. In the interim, customers with existing PMS transactions in naira can request a refund by formalizing their refund processing. This development has significant implications for the Nigerian fuel market, which is already experiencing volatility.
The Dangote Petroleum Refinery is a major player in Nigeria’s petroleum industry, and its decision to halt naira sales for PMS is likely to have far-reaching consequences. The refinery’s crude-for-naira allocation is a critical component of its operations, and the exhaustion of this allocation has forced the company to reevaluate its sales strategy.
As the Nigerian government continues to grapple with the challenges of fuel subsidy removal and currency fluctuations, the Dangote Petroleum Refinery’s decision may exacerbate the existing pressures on the fuel market. The potential surge in fuel prices could have a ripple effect on the broader economy, impacting businesses and individuals alike.
The situation highlights the complexities of Nigeria’s petroleum industry, where refineries face significant challenges in maintaining a stable supply of fuel due to various factors, including crude allocation, currency fluctuations, and regulatory frameworks. As the situation unfolds, stakeholders will be closely monitoring the developments and potential implications for the Nigerian economy.