The Independent Petroleum Marketers Association of Nigeria (IPMAN) has resorted to fuel imports to bridge the supply gap left by Dangote Petroleum Refinery’s exit from the local market.
A member of IPMAN’s Board of Trustees, Debo Ahmed, confirmed the development, warning that urgent action is needed to prevent market destabilisation.
Fuel Prices Surge as Supply Shortage Worsens
The price of Premium Motor Spirit (PMS) surged by ₦70 per litre, with major filling stations adjusting pump prices. MRS and Heyden stations, previously selling at ₦860 per litre, now dispense petrol at ₦930 per litre. Conoil and Northwest have also raised prices to ₦930 per litre, reflecting the growing supply crisis.
Dangote Refinery Suspends Sales Over Naira-for-Crude Policy
Dangote Petroleum Refinery recently halted local fuel sales, citing concerns over currency mismatch in crude procurement. The refinery’s statement confirmed that naira sales had exceeded naira-denominated crude receipts, prompting a temporary shift to dollar transactions.
Stakeholders Debate Impact of Naira-for-Crude Policy
The Depot and Petroleum Marketers Association of Nigeria (DAPPMAN) has urged the government to discontinue the naira-for-crude policy, warning of risks to forex stability.
Executive Secretary Olufemi Adewole argued that crude oil transactions should remain dollar-denominated to attract investment and maintain global trade relations.
Government Defends Policy, Citing Currency Stability Goals
The Federal Government launched the naira-for-crude policy in October 2024 to ease pressure on the dollar and support local refineries. Finance Minister Wale Edun stated that the policy aims to stabilise the naira while ensuring domestic fuel security. However, critics warn that the volatile exchange rate could deter foreign investors and disrupt trade.
Calls for Sustainable Solutions in Nigeria’s Oil Sector
As fuel prices soar and supply disruptions persist, industry experts stress the need for balanced policies that protect both market stability and investment confidence. The ongoing debate underscores the urgent need for reforms to ensure sustainable growth in Nigeria’s downstream petroleum sector.
