The Dangote Petroleum Refinery reverted to the sale of petrol in naira because importers were allegedly holding back their stocks, a management official of the company has told The PUNCH.

The official, who pleaded for anonymity because he was not authorised to speak to the media, told our correspondent that the refinery’s decision to halt dollar-denominated fuel sales was not because the issue of crude oil shortage had been resolved.

He said the reversal was taken in the interest of the country to prevent fuel scarcity and further increases in petrol prices. According to him, the importers were deliberately holding back their stocks in anticipation of higher fuel prices.

“We took a decision in the interest of the country to start selling Premium Motor Spirit in naira, since we saw that the importers were holding back their goods, looking for a price rise,” the source said.

The Dangote refinery recently resumed the sale of petrol in naira, ending its brief dollar-denominated pricing regime. A notice issued by the refinery’s commercial department on Wednesday informed customers that the gantry price of petrol was N1,215 per litre, while the coastal price was N1,602,495 per metric tonne.

The development marked a reversal of the refinery’s decision to sell petrol in United States dollars, a move that triggered anxiety across the downstream petroleum sector and prompted emergency intervention by the Federal Government.

The PUNCH had earlier reported that independent marketers suspended the loading of petrol from the refinery after it commenced dollar-denominated sales, saying they could not source the foreign exchange required for the transactions.

The refinery had defended the decision, explaining that it was compelled to adopt dollar sales because it was no longer receiving adequate crude oil under the Federal Government’s naira-for-crude initiative and had to source additional crude from the international market in dollars.

Speaking further, the source disclosed that the Dangote Group was still in talks with the Federal Government, expressing hope that the government would act in good faith once an agreement was reached. “We are still in talks with the government, but I hope that they will be sincere,” he noted.

The Dangote official also regretted that some people in government preferred exporting crude oil and importing refined petroleum products into the country. “As you know, they like to sell the crude to the traders outside the country and import the petroleum products,” he stated.

Before the Dangote refinery began operations in 2024, Nigeria had for years depended on imported petrol despite being one of Africa’s leading oil-producing countries.

The country’s refineries in Port Harcourt, Warri and Kaduna were non-functional, leaving Nigerians at the mercy of fuel importers. The period was marked by persistent fuel shortages and the controversial fuel subsidy regime.

With the commencement of operations at the Dangote refinery, the downstream sector became more decentralised. The Nigerian National Petroleum Company Limited also ended the payment of implicit fuel subsidies, bringing an end to the long queues at filling stations.

It will be recalled that some depot owners last week raised petrol gantry prices to as high as N1,275 per litre after the Dangote refinery temporarily halted loading at its gantry.

Following the refinery’s announcement of a gantry price of N1,215 per litre, many depots reduced their prices to remain competitive. According to Petroleumprice.ng, depot prices ranged between N1,215 and N1,220 per litre on Sunday.

Similarly, pump prices of petrol are now hovering between N1,260 and N1,300 per litre, depending on the location. The PUNCH reports that the rise in petrol prices resulted from renewed tensions in the Middle East, which pushed up global oil prices.

Before closing at $96 per barrel on Friday, global oil prices climbed above $100 per barrel on Thursday for the first time in nearly two months after escalating attacks on commercial shipping in the Red Sea heightened fears of prolonged supply disruptions across key global energy routes.

The PUNCH reports that the latest price surge could have mixed implications for Nigeria. While higher crude prices may increase the country’s export earnings and boost government revenues, they could also raise the cost of imported refined petroleum products, worsen inflationary pressures and increase the burden on consumers if domestic supply remains insufficient.