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ABUJA, NIgeria - The cost of Premium Motor Spirit (PMS), commonly referred to as petrol, may increase following the temporary suspension of petroleum product sales in naira, according to the Independent Petroleum Marketers Association of Nigeria (IPMAN).
The Dangote Petroleum Refinery announced on Wednesday that it has paused the sale of petroleum products in naira.
In response, the Public Relations Officer of IPMAN, Chinedu Okadike, informed our correspondent in Abuja that this new development could lead to a rise in the prices of petroleum products soon.
"The price of PMS may rise again," he stated.
The Dangote Refinery explained in its announcement that "to this point, our sales of petroleum products in naira have surpassed the value of naira-denominated crude we have acquired.
Therefore, we must temporarily shift our sales currency to match our crude procurement currency."
The Dangote Refinery’s statement included: “Dear Valued Customers, we wish to notify you that we have temporarily suspended the sale of petroleum products in naira.
This decision is essential to prevent a discrepancy between our sales revenues and our crude oil purchase obligations, which are currently in U.S. dollars. Our sales of petroleum products in naira have exceeded the value of naira-denominated crude we have obtained.
Consequently, we must temporarily adjust our sales currency to align with our crude procurement currency. We have also noted reports online alleging that we are ceasing loading due to a ticketing fraud incident. This is a malicious falsehood.
Our systems are sound, and we have encountered no fraud issues. We remain committed to serving the Nigerian market effectively and sustainably. Once we receive an allocation of naira-denominated crude cargoes from NNPC, we will quickly resume petroleum product sales in naira. We appreciate your understanding and cooperation during this time.”
