Fuel Prices May Rise as Dangote Refinery Switches to Dollar Sales – IPMAN Warns

ABUJA, Nigeria – The Independent Petroleum Marketers Association of Nigeria (IPMAN) has warned that the prices of petrol, diesel and other petroleum products could increase following the Dangote Refinery’s decision to commence the sale of refined products in U.S. dollars.

IPMAN’s National Publicity Secretary, Chinedu Ukadike, raised the concern during an interview on Tuesday, saying the development could expose fuel prices to exchange rate fluctuations and increase pressure on the foreign exchange market.

The warning comes after the Dangote Refinery suspended the sale of refined petroleum products, including Premium Motor Spirit (PMS), in naira, effectively ending the naira-for-crude arrangement with the Federal Government, which began on October 1, 2024.

According to Ukadike, the refinery’s new pricing model means the cost of petrol, diesel and other petroleum products will now be tied directly to the prevailing exchange rate.

He explained that any depreciation of the naira or increase in demand for dollars could lead to higher fuel prices across the country.

“This policy is going to put very strong pressure on the dollar. And you will see the dollar also climbing up as crude oil is climbing.

“These are the two most influential commodities. These are the two most influential issues or concepts that normally trigger the price of domestic petroleum products at the pumps.

“The Federal Government should intervene immediately if this happens to be true,” Ukadike said.

He urged the Federal Government, particularly the Presidential Committee overseeing the naira-for-crude initiative, to urgently intervene to prevent a fresh surge in fuel prices.

The development comes as global crude oil prices climbed by nearly 10 percent on Monday amid escalating tensions in the Gulf region, raising concerns over the cost of petroleum imports and domestic fuel pricing.

Despite the refinery’s decision, ex-depot petrol prices remained unchanged at ₦1,075 per litre at Dangote Refinery as of Tuesday.

Other depot owners, including Pinnacle, Integrated, African Terminal and Ranoil, were selling between ₦1,085 and ₦1,170 per litre, while retail pump prices ranged from ₦1,155 to ₦1,205 per litre in Abuja and surrounding areas.

Industry stakeholders are now closely monitoring the situation amid fears that continued pressure on the foreign exchange market could trigger another round of fuel price increases.