₦airaland Forum

There is anxiety over fuel price following Wednesday’s announcement by Dangote Refinery that it is suspending the sale of petroleum products, Daily Trust can report.

The development is fueling panic buying at some filling stations with marketers warning against such even as fuel prices remain stable, according to checks by our correspondent at some filling stations yesterday.

Dangote Refinery had on Wednesday confirmed suspending the sale of its products comprising PMS, diesel and Jet fuel in naira.

According to it, “This decision is necessary to avoid a mismatch between our sales proceeds and our crude oil purchase obligations, which are currently denominated in U.S. dollars.”

In a message to its customers, Dangote Refinery said, “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.”

Daily Trust reports that the development was due to the collapse of the naira-for-crude deal between it and the Nigerian National Petroleum Company Limited (NNPCL).

The arrangement, which started in October 2024 was for an initial period of six months ending by the end of March but the implementation was faced with a series of challenges over low supply.

Marketers and experts who spoke with our correspondent expressed concerns that the development could trigger a fresh increment in PMS and other products as the prices would now be dollarised.

National Publicity of the Independent Petroleum Marketers’ Association of Nigeria (IPMAN), Chinedu Ukadike in a chat with Daily Trust yesterday expressed optimism that the federal government would resolve its issue with Dangote to enable it resume the sale of its products in naira.

He warned that if the marketers begin to buy fuel in dollars, they might be forced to also sell in dollars; the development, which would put massive pressure on dollars.

He disclosed that already some tank farms had started increasing their products to independent marketers when NNPC and Dangote had not increased their prices.

He said, “We the independent marketers are patiently watching the scenario and also patiently watching Dangote and the FG in resolving this issue of Naira to crude which will definitely help us and stabilise the economy, some tank farm owners have started increasing prices of petroleum products in their tank farms but we the independent marketers are appealing to our marketers to not engage in panic buying because any moment from now this issue will be resolved and normal sales will be returned.

“Dangote has not increased his products neither the NNPC, the unnecessary and unwarranted increase by these tank farm owners to retail outlets is uncalled…

“We are hopeful that within a few days this issue will be resolved because if they sell fuel to us in dollars that means we sell fuel to our customers in dollars too, because that pressure cannot be passed to us, we will also pass it to the final consumers.

“It means the dollar has been localized as a legal entity in Nigeria, there will be acceleration in prices, instead of prices going down it will be going up because the charge for dollar by so many people will be there and people will now start trading in dollars.”

“Look at now, the dollar was at around N1400 some weeks ago, now it’s almost N1550 and tomorrow speculators will take it to N1600, it is an artificial increase.”

Professor of Energy Law, Yemi Oke asked the federal government to immediately intervene to avert a price increase.

He said, “The reality is that with the policy Dangote just brought out, it means PMS price would naturally go up unless the federal government intervenes and directs the continued sale of crude to Dangote in naira. That is the only way Dangote can hedge against price volatility with the exchange rate.


“The dollar would also go up. It climbed from about 1,300 to N1,500 and that is an indication that the PMS price might also go up.”

He stated that NNPC is also a growing concern as a limited liability company mandated to also make money like other national oil companies and also it is competing with Dangote.

According to him, by the time Nigeria has more refineries, prices of PMS would go down. “But for now, it is still a kind of hide and seek game between Dangote Refinery and NNPC and it is only the federal government that can stem the tide to address this for and in the interest of Nigeria,” Oke said.

Source: https://dailytrust.com/Naira-for-crude-Motorists-engage-in-panic-buying

I see fuel coming down, I see it dropping below N400.

This I have seen.

The leaders of this country

I reserve my comment.

Let dangote do whatever he wants. We are tired and don't just care anymore.

Imagine seek and hide game between NNPCL and Dangote on the peril of the masses

Indeed we are our own enemies in this country indeed

Since becoming president, tinubu has done everything in his power to see this refinery fail.

This is just insanity

PMS has been Increased by N30 in Benin, Tinubu is too wicked to be the president. Perhaps a curse from the gods.

What is the purpose of panic buying? If you like buy one drum , it will get finished and boom u re back to reality

Nah person wey get money dey panic buy jare, I have bought bicycle for myself and family. Anybody wey dey go out, ride bicycle to your destination, now my family are all healthy from doing bicycle exercise.

Some of dis useless leaders just choose to be punishing it citizens

I will like to help 5 people with 2 million naira each to start up a business. Just tell me what the money can do for you

When the people in power only cares about themselves this is what you get.the masses suffer the whole consequence.

The Masses should Continue arguing and Defending Illegality and Oppression of the Elites just because they are from your Tribe Region or Religion.
Last last na Everybody go chop Breakfast.

this is a game to this people
when two elephants are fighting, the grass suffers

How come Dangote was dropping price every now and then when he knew Naira for crude would end soon

It's a big lie. This is a big fat lie. The marketers are just using this newspaper that is very frequent in reporting something like this with fake names to spike up panicking. No one is panicking. They just wanted to use this for quick gains since dangote has been dealing with them left to right. Now that he paused his local supply, they want to quickly make quick gains. They are the one that has been complaining lately of running at loss. If retail filling stations fall for their gimmicks, they will buy fuel that won't be able to sell later. Dangote issues will soon be resolved and he will keep dragging the price down, but before that time , they want to outsmart the consumers.

Lies!

I bought at N885 at Ardova yesterday.

If our bushes are safe wetin concern me with motor. I go use my leg Benz follow bush path go anywhere i won go even if na Togo but they have bastardised the whole country and make it unsafe

Fake news, there's no panic buying

Sonofgod1990:
Some of dis useless leaders just choose to be punishing it citizens

I will like to help 5 people with 2 million naira each to start up a business. Just tell me what the money can do for you

Bro, I will use the 2million to add up to my savings to get a Corolla car for Uber taxi..

If Dangote reduce Petro price to a certain extent, NNPCL with sanction him. So sad.

Nigeria is a place where any single step forwards gets followed up with like 5 steps backwards. Subsidy removal and local refining is being complemented with like 10 backwards step. This is one of the twn steps.

Nawa for this country Ooo

Sonofgod1990:
Some of dis useless leaders just choose to be punishing it citizens

I will like to help 5 people with 2 million naira each to start up a business. Just tell me what the money can do for you

I'll use the money to japan

FalseProphet1:
I see fuel coming down, I see it dropping below N400.

This I have seen.

You didn't see nothing...

You fit see when My Arsenal go win champions League?

It will favour me and my family.

Obviously the government has lost hope on the naira.

Sonofgod1990:
Some of dis useless leaders just choose to be punishing it citizens

I will like to help 5 people with 2 million naira each to start up a business. Just tell me what the money can do for you

Good afternoon and happy Sunday sir, I really want to setup a laundry business but I don't have enough capital, I only need #700,000 and I will repay back with %150 interest.

Geeflow:
Good afternoon and happy Sunday sir, I really want to setup a laundry business but I don't have enough capital, I only need #700,000 and I will repay back with %150 interest.

You want to run away with my money? Don't worry i will help you. Remind me tomorrow

So this is where we are now?
The country had long gone to the dogs

APC = pain. For ten years running so far