Dangote Refinery has suspended the sale of fuel in Naira due to crude supply challenges, opting for dollar transactions. This shift may push fuel prices above N1,000 per litre. Experts warn of economic strain, urging the government to reinstate the Naira-for-crude policy to stabilize prices and protect consumers.
Dangote Refinery has stopped accepting payments in Naira for fuel sales, opting for transactions exclusively in dollars due to crude oil supply challenges. This shift has raised concerns among industry analysts, who warn that petrol prices could soon surpass N1,000 per litre, further straining consumers already struggling with high living costs.
The refinery, which sources crude locally, had initially accepted Naira payments under a government-backed arrangement. However, supply constraints and foreign exchange dynamics have made it unsustainable. With the transition to dollar payments, fuel importers and marketers now face increased costs, potentially leading to a hike in pump prices.
Economic experts argue that the government's previous policy of crude supply in exchange for Naira payments helped stabilize fuel prices. They caution that without a reversal, the current approach may worsen inflation and intensify economic hardships for Nigerians.
The situation has sparked debates over Nigeria’s energy policies, with stakeholders calling for urgent interventions to prevent excessive fuel price hikes. Many are urging authorities to reconsider the Naira-for-crude model to ease pressure on fuel costs and maintain affordability for consumers.
As the market adjusts to this shift, Nigerians remain concerned about its impact on transportation and daily expenses, anticipating another round of economic strain if fuel prices continue to rise.
