Dangote Refinery Suspends Petrol Sales in Naira, Citing Crude Allocation Shortfall

Dangote Refinery Suspends Petrol Sales in Naira, Citing Crude Allocation Shortfall

 

 

The Dangote Petroleum Refinery has announced it will suspend the sale of petrol in naira, effective Sunday, September 28, 2025, in a move that has stirred concern among marketers and industry stakeholders.

 

In a notice sent to customers on Friday evening, the refinery explained that its naira-based crude allocation has been exhausted, making it impossible to sustain petrol sales in local currency. The announcement, signed by the Group Commercial Operations of Dangote Petroleum Refinery & Petrochemicals, urged customers with ongoing naira transactions to formally request refunds.

 

“We write to inform you that Dangote Petroleum Refinery & Petrochemicals has been selling petroleum products in excess of our Naira-Crude allocations and, consequently, we are unable to sustain PMS sales in naira going forward,” the statement read.

 

This is not the first instance of such a suspension. In March 2025, the refinery briefly halted naira-based sales, citing similar allocation challenges, which contributed to concerns over the dollarisation of fuel transactions and led to petrol prices climbing to nearly N1,000 per litre.

 

Analysts warn that the latest move could trigger further volatility in Nigeria’s downstream sector, potentially pushing pump prices above N900 per litre. Jeremiah Olatide, CEO of Petroleumprice.ng, noted that Dangote Refinery has been instrumental in keeping domestic fuel prices stable in recent months.

 

The suspension comes amid rising industrial tensions at the refinery. The Petroleum and Natural Gas Senior Staff Association of Nigeria recently accused the company of unfair labour practices after over 800 workers were reportedly dismissed. Union leaders have threatened nationwide solidarity actions if the matter is not addressed.

 

With the refinery playing a critical role in Nigeria’s energy security, stakeholders have expressed concern that the twin challenges of naira sales suspension and labour unrest could undermine government efforts to stabilise the fuel market under current reforms.