*Refinery Says Suspension From Sunday, Sept. 28
*Decision Due To Crude-for-Naira Allocations Exhaustion, To Refunds Payments For Ongoing Transactions
*Face-Off Over Sacking Of 800 Nigerian Workers Lingers
THE cost of Premium Motor Spirit (PMS), otherwise known as petrol, is expected to go up across the country from Monday, September 28, unless the Federal Government intervenes and addresses the naira-for-crude-oil allocation arrangement with Dangote Refinery, which has notified marketers of its decision to suspend sales of the product in Naira, citing exhaustion of its crude-for-Naira allocation.
As a result of the refinery’s decsion, the Independent Petroleum Marketers Association of Nigeria (IPMAN), on Saturday, September 27, announced that its members would effect a petrol price hike nationwide, from Monday, September 29.
National President of IPMAN, Abubakar Maigandi, confirmed that the 650,000-barrel-per-day refinery, on Friday, September 26, sent an email to its customers, including marketers, informing them of the suspension of petrol sales in Naira with effect from Sunday, September 28.
Maigandi said the decision will eventually lead to fuel pump prices increase from their current N865 and N910 per litre in Lagos and Abuja, respectively, from Monday, September 29, unless the Federal Government intervenes.
He stated: “Yes, we received the email from Dangote Refinery on the suspension of Premium Motor Spirit sales in Naira on Friday evening. The implication is that our members will announce a fuel price increase. It may take effect from Monday if the Federal Government does not intervene.”
Dangote Petroleum Refinery and Petrochemicals, in email sent to its customers at 6:42 pm on Friday, signed by the Group’s Commercial Operations, titled, ‘Suspension of DPRP PMS Naira Sales – Effective 28th September 2025,’ also asked customers with ongoing naira-based transactions to formally request refunds.
The notice said: “We write to inform you that Dangote Petroleum Refinery and Petrochemicals has been selling petroleum products in excess of our Naira-Crude allocations, and consequently, we are unable to sustain PMS sales in Naira going forward.
“Kindly note that this suspension of Naira sales for PMS will be effective from Sunday, 28th of September, 2025. We will provide further updates regarding the resumption of supply once the situation has been resolved.
“All customers with PMS transactions in Naira who would like a refund of their current payments should formally request the processing of their refund.”
The action of the refinery is likely to escalate the current industrial climate, coming at a time it is embroiled in a fresh face-off with the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) over the sacking of 800 Nigerian workers on Friday workers.
The Naira-for-crude agreement between the refinery and Federal Government started on October 1, 2024. In April, this year, the government, declared that the initiative, intended to bring down the cost of production for the refinery and, by extension, impact the price of petrol, would continue indefinitely.
It was not be ascertained if the government had gone back on its commitment and when; hence the refinery’s decision.
Meanwhile, the Federal Government was yet to comment on the decision by Dangote Refinery at press time.
Recall that in March this year, the refinery briefly suspended sales of refined products in naira, saying its allocations under the crude-for-naira programme were inadequate to meet growing domestic demand.
That decision ultimately led to increase in the pump price of petrol to almost N1,000 per litre.
