The Nigerian National Petroleum Company Limited and the Dangote Petroleum Refinery’s six-month naira-for-crude deal has ended, sparking anxiety in the downstream arm of the oil and gas sector. The deal’s extension or halt is still being discussed, but negotiations have yet to yield a resolution.
As a result, petrol prices have surged from around N860/litre to over N930/litre within one week. Dealers attribute this increase to the Federal Government’s failure to extend the naira-for-crude deal. Marketers predict further price hikes, potentially reaching N1,000/litre, if the issue is not addressed.
The Dangote refinery announced a temporary suspension of petrol sales in naira due to a mismatch between sales proceeds and crude oil purchase obligations denominated in US dollars. This decision led to an immediate price increase, with private depot prices jumping to around N900/litre.
Industry stakeholders, including the Independent Petroleum Marketers Association of Nigeria (IPMAN), have expressed concerns about the price hike and its impact on citizens. IPMAN’s National Publicity Secretary, Chinedu Ukadike, called for a stakeholders’ meeting to discuss the issue and find a way forward.
The situation may worsen with the Dangote refinery’s planned 30-day maintenance shutdown in June, which could further reduce petrol supply and drive prices up.
