Dangote Still Selling Fuel in Naira – PETROAN

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has clarified that Dangote Petroleum Refinery continues to sell fuel in naira, countering speculations that the company had switched to dollar transactions. The clarification comes amid concerns over foreign exchange volatility and its impact on fuel pricing in Nigeria.

Speaking on the matter, PETROAN officials reassured marketers and consumers that Dangote Refinery has not altered its pricing model to require payment in U.S. dollars. Instead, the refinery maintains its transactions in naira, ensuring accessibility for local buyers and reducing pressure on forex demand in the downstream sector.

Fuel Pricing and Market Dynamics

The clarification follows growing discussions around the pricing of petroleum products, especially with Nigeria’s heavy reliance on imports before Dangote Refinery’s production came online. Many industry players had feared that if the refinery adopted dollar-based transactions, fuel prices would become more volatile due to fluctuations in exchange rates.

By maintaining sales in naira, Dangote Refinery helps stabilize fuel supply while easing financial strain on marketers who would otherwise struggle with forex procurement. This move is also seen as beneficial for Nigeria’s economic stability, as it reduces the need for scarce foreign currency in fuel transactions.

Implications for Consumers

For Nigerian consumers, the assurance that Dangote’s fuel remains priced in naira means that pump prices may not experience drastic fluctuations linked to currency exchange rates. While fuel costs are still influenced by global crude oil prices, retaining naira-based transactions offers a level of predictability for local buyers.

Industry experts believe this approach aligns with the federal government’s goal of strengthening the local economy and reducing dependence on imported refined products. If sustained, it could pave the way for improved fuel affordability and long-term price stability.

Future Outlook

As Dangote Refinery continues to ramp up production, PETROAN has called for greater collaboration between stakeholders to ensure efficient distribution and affordability of petroleum products. With the refinery’s capacity to meet a significant portion of Nigeria’s fuel demand, expectations remain high that local refining will gradually reduce import reliance and improve market conditions.

For now, PETROAN’s confirmation provides some relief to fuel marketers and consumers, reinforcing confidence that Dangote Refinery remains committed to supporting Nigeria’s economy by keeping fuel transactions in naira.