Lagos, Nigeria – A looming fuel price surge is set to grip Nigeria as the Dangote Refinery announced it will no longer sell petrol in Naira, compelling marketers to purchase in dollars. The shift, confirmed by the Independent Petroleum Marketers Association of Nigeria (IPMAN), is expected to push up pump prices across the country in the coming days.
Abubakar Shettima, national president of IPMAN, disclosed that while supply will remain stable, the new dollar-denominated system will inevitably alter pricing. “Definitely, if he is selling in dollars, there will be a price increase. There will not be scarcity, but it will definitely affect the price. Because if you are buying in dollars, you calculate the interest rate and all that, because we sell in Naira,” Shettima said.
The policy change underscores the mounting pressure on Nigeria’s energy sector, already strained by fluctuating exchange rates. Marketers, who traditionally transact in Naira, now face the dual challenge of sourcing scarce dollars and managing the cost implications. Shettima explained that IPMAN has received official notification from Dangote Refinery, and the association’s executive council is expected to meet on Monday to evaluate the full impact.
Industry insiders note that the transition is not expected to disrupt the supply chain, given the domestic production capacity of the refinery. However, the pricing mechanism, linked directly to foreign exchange rates, is likely to burden both distributors and end-users. “Getting the dollar is another problem, because it looks a little bit scarce. So, it’s very difficult for us to source dollars with the high exchange rate,” Shettima emphasized.
Analysts suggest the decision reflects the refinery’s need to hedge against currency depreciation and align with global trade norms. Yet for ordinary Nigerians, the timing raises concerns of inflationary pressure on transportation and essential goods.
The development comes amid broader industry tensions, including ongoing disputes with the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), which recently directed members to halt gas supply to the refinery. Dangote Group has condemned the directive as “lawless,” insisting operations remain unaffected.
For now, the country awaits IPMAN’s resolution, but the trajectory is clear: the cost of petrol is set to rise, and the fuel price surge may once again test Nigeria’s economic resilience.
