The Federal Government’s midstream and downstream petroleum regulator has defended Dangote dollar fuel sales, saying the move does not violate the Petroleum Industry Act (PIA).
Dangote Can Officially Sell in Dollars
According to senior officials, the law allows operators to recover their investment and operating costs. Since the Dangote Refinery now buys much of its crude oil in dollars, it can legally sell refined products in the same currency. One official said,
“The naira-for-crude deal is not to Dangote’s advantage right now. They are sourcing a lot offshore. And with the crisis in the Middle East, the refinery has to recover costs now. It has to survive.”
PIA Says They Support Businesses That Spend in Dollars
The officials explained that the refinery had already absorbed huge costs before taking the decision. They added that the PIA supports businesses that spend dollars to recover those costs in dollars. Another regulator stated,
“If you study the PIA, you can recover your costs in dollars if that’s what you’ve spent. There’s nothing wrong with what the Dangote refinery has done.”
Meanwhile, another source urged the Nigerian National Petroleum Company Limited (NNPC) to improve crude supply under the naira-for-crude arrangement instead of forcing the refinery to depend on expensive offshore purchases.
Dangote Announced New Dollar Sales Earlier This Week
Earlier this week, Dangote Refinery informed marketers that petrol, diesel and aviation fuel would now be priced in dollars for gantry and coastal transactions. Under the new rates, petrol sells for $0.779 per litre, diesel costs $1.087 per litre, while aviation fuel goes for $0.942 per litre.
However, the refinery excluded cooking gas from the new pricing system. Shortly after the announcement, depot owners raised loading prices as marketers adjusted to higher replacement costs. Industry data also showed petrol prices climbing by as much as N113 per litre, while diesel increased by up to N150 per litre in some depots.
Marketers Have Rejected the Dollar Fuel Sales
Despite the regulator’s backing, marketers and industry groups have rejected the decision. They argued that buying fuel in dollars would worsen Nigeria’s foreign exchange challenges because consumers still pay in naira.
Dangote, however, insisted the change became necessary after receiving limited crude under the naira-for-crude deal. Company sources also blamed higher global oil prices and delays in accessing foreign exchange.
“We can’t be subsidising the country after the government has withdrawn the subsidy,” the company said, adding that it could no longer carry the growing financial burden.
