Dangote Petroleum Refinery has temporarily suspended the sale of petroleum products in Naira, citing an imbalance between its Naira-denominated sales and US dollar-denominated crude oil purchase obligations.
The refinery aims to align its sales currency with its crude procurement obligations to ensure financial sustainability.
Key Reasons for the Halt:
- FX Mismatch: The refinery’s Naira-denominated sales have exceeded the value of Naira-priced crude received.
- Crude Oil Purchase Obligations: The refinery’s crude oil purchases are denominated in US dollars.
Impact on the Market:
- Uncertainty for Consumers and Marketers: The temporary halt in Naira sales may cause uncertainty in the short term.
- Potential Effect on Oil Prices: The development may also impact oil prices in the domestic market.
Source: Nairametrics
