The Dangote Refinery has announced the stopping of sale of petroleum products in naira to the local market to avoid a mismatch between its sales proceeds and crude oil purchase obligations, which it said are currently denominated in United States dollars.
The company disclosed this in a statement, explaining that it was being compelled to temporarily adjust its sales currency to align with its crude procurement currency.
The refinery however said it would promptly resume petroleum product sales in naira as soon as it receives an allocation of naira-denominated crude cargoes from the Nigerian National Petroleum Company Limited (NNPC),
It also disclaimed reports that it stopped product loading due to an incident of ticketing fraud.
The statement reads: “Dear valued customers, 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.
“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.”
Meanwhile, the cost of loading petrol at private depots in Lagos jumped to N900 from N850 per litre in Lagos on Wednesday (yesterday) after the announcement.
