Why We’re Halting Petrol Sales In Naira – Dangote Refinery

The Management of Dangote Refinery has said it would stop selling petrol in Nigeria to avoid a mismatch between its sales proceeds and crude oil purchase obligation.

Naijaonpoint reports that Dangote management, in a statement on Wednesday, explained the refinery’s sales of petroleum products in naira have exceeded the value of naira-denominated crude it recieved.

The statement further refuted claims that it would stop loading due to incidents of ticketing fraud.

“We wish to inform you that, Dangote Petroleum Refinery has temporarily halted the sale of petroleum products in Naira. 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.

“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.

“Our attention has also been drawn to reports on the internet claiming that we are stopping loading due to an incident of ticketing fraud. This is malicious falsehood. Our systems are robust and we have had no fraud issues,” it read.

It added that sales of petrol in naira would continue as soon as the refinery receives naira-denominated crude from Nigeria National Petroleum Company Limited (NNPCL)

“We remain committed to serving the Nigerian market efficiently and sustainably. As soon as we receive an allocation of Naira-denominated crude cargoes from NNPC, we will promptly resume petroleum product sales in Naira. We appreciate your understanding and cooperation during this period,” it concluded.