Fresh concerns have emerged over a possible increase in petrol prices after reports suggested that Dangote Petroleum Refinery may begin selling refined petroleum products in U.S. dollars.
The reported move is linked to rising global crude oil prices and uncertainty surrounding the naira-for-crude arrangement with the Nigerian National Petroleum Company Limited (NNPC Ltd.), which was introduced to allow the refinery to buy crude oil in naira.
Industry experts say that if the refinery switches to dollar-denominated sales, fuel marketers would have to source foreign exchange to buy products, a development that could increase pump prices, put additional pressure on the naira and worsen inflation.
Economist Dr. Muda Yusuf urged caution, noting that Dangote Refinery has not officially confirmed the reports. He said any decision would likely be a business response to rising global oil price volatility rather than an arbitrary pricing policy.
Oil and gas analyst Dr. Ayodele Oni also explained that the naira-for-crude arrangement was designed to match crude purchases and product sales in the same currency. According to him, if crude supplies continue to be purchased in dollars, selling products in naira exposes the refinery to exchange-rate risks.
Experts believe a long-term solution would require consistent domestic crude supply under the naira-for-crude initiative or other measures to reduce foreign exchange exposure and maintain stable fuel prices.
