There is growing anxiety in Nigeria’s downstream oil sector as indications emerge that Dangote Refinery plans to stop supplying petroleum products to the Nigerian market.
This development comes as the renegotiation of the naira-for-crude deal has made little progress.
Sources familiar with the matter revealed that the refinery will continue to load fuel for export, as it currently sources its crude stock from the international market in dollars.
The spokesperson of Dangote Group, Anthony Chiejina, claimed he was unaware of any plans by the 650,000-per-day refinery to halt domestic fuel supply.
“I am not aware,” he said.
This development comes as the Nigerian National Petroleum Company Limited (NNPCL) recently confirmed its discussions with Dangote Refinery for a fresh contract on the naira-for-crude deal.
Recall that the federal government launched the naira-for-crude deal with Dangote Refinery in October last year, allowing the refinery to sell to Nigerian marketers in naira because it buys crude in the local currency through NNPCL.
In recent months, the price of premium motor spirit fell to at least N860 per liter due to a price war between Dangote Refinery and NNPCL.