Dangote Refinery Back In Action: Naira-for-Crude Challenges And Rising Fuel Prices

Refinery Resumes Petrol Loading Amid Currency Challenges

Listen up, folks. Let’s talk about the Dangote Petroleum Refinery, which has just resumed loading Premium Motor Spirit (PMS), also known as petrol, onto trucks for oil marketers. This comes after a brief pause caused by the suspension of the Naira-for-Crude program. The halt was necessary because of challenges in crude oil prices and the fluctuations in foreign exchange. It’s like trying to play chess without knowing where the king is moving next. Things are tricky, and the refinery had to reassess its operations.

The refinery, which processes an impressive 650,000 barrels per day, had been operating smoothly thanks to the Naira-for-Crude program. This initiative allowed the refinery to trade crude oil in Naira, making it easier for local marketers to purchase fuel. But with the suspension of this program, the refinery decided to stop loading trucks based on Naira payments. Now, marketers who want to continue receiving supplies have to adjust their payment methods.

Switching Payment Methods: Dollar-Based Transactions

Even though the refinery halted Naira-based transactions, it didn’t stop all operations. The refinery continued loading petrol onto ships using dollar-based transactions. This means that oil marketers who had agreements with Dangote Refinery were asked to "top up" their payments to ensure a steady supply of petrol. It’s like upgrading your coffee order from a small to a venti—you’re paying more, but you’re getting what you need.

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Industry insiders, speaking to Punch, revealed that several companies, including MRS Oil & Gas, have adapted to the new payment arrangements. These companies are now being loaded at a price of ₦880 per litre. While this might seem like a slight increase, it’s just the beginning of what’s happening across the country.

Rising Fuel Prices Across Nigeria

Here’s the real kicker: petrol prices across the country have skyrocketed. The latest figures show new pump and depot prices reaching as high as ₦960 per litre. That’s a significant jump, and it’s affecting everyone from drivers to businesses that rely on fuel for daily operations. It’s like trying to keep your car running while the cost of gas keeps climbing.

According to the latest price list obtained from MRS Oil and Gas, which became effective from March 28, 2025, petrol prices have surged in major cities. Lagos, for instance, is recording the lowest rates at ₦930 per litre. Meanwhile, states in the South West, including Ogun, Oyo, Osun, Ekiti, Kwara, and Ondo, are paying ₦940 per litre. In the South-South and South-East regions, including Edo, Abia, Akwa Ibom, Bayelsa, Rivers, Cross River, and Enugu, the price is set at ₦960 per litre.

And if you’re living in the northern states, including Abuja, Kaduna, Benue, Kogi, Niger, Sokoto, Kebbi, and Nasarawa, you’ll be paying ₦950 per litre. The far northern states, such as Zamfara, Kano, Jos, Bauchi, Taraba, Adamawa, Borno, Katsina, Jigawa, Gombe, and Yobe, will pay the highest price of ₦960 per litre. It’s a tough pill to swallow, but the reality is here.

The Naira-for-Crude Program: Challenges and Opportunities

Now, let’s talk about the Naira-for-Crude program. This initiative was designed to boost domestic fuel supply, reduce import costs, and stabilize pump prices. It was a great idea on paper, but like many things, it’s facing challenges. Fluctuations in global crude prices and currency issues have made it difficult to maintain the program. It’s like trying to build a house on shifting sand—things keep moving, and you have to adapt.

Under the scheme, Dangote Refinery has received 48 million barrels of crude oil in Naira since October 2024. In total, it has received 84 million barrels since it began operations in 2023. The refinery has stated that it aims to meet 100% of Nigeria’s refined product requirements, with additional surplus for export. This means that not only will Nigeria be self-sufficient in fuel, but it could also become a major player in the global fuel market.

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In a report from the refinery’s website, Dangote Petroleum Refinery confirmed its ability to process Nigerian and other crude varieties. This multi-billion-dollar project is expected to create a market worth $21 billion per year for Nigerian crude. That’s a lot of potential, and it shows just how important this refinery is for the country’s economy.