Fuel Pricing Controversy: FG Demands Answers On Dangote’s Naira Transactions

Dangote Refinery recently announced a halt in petrol sales, citing the expiration of its naira-to-crude supply agreement with the Nigerian National Petroleum Company Limited (NNPCL).

Speaking in an interview with News Central on Tuesday, Ukadike claimed that market players opposing the end of fuel importation fueled speculations that led to the suspension of the deal.

He explained that the government questioned the logic of selling crude to Dangote in naira while imported fuel products were reportedly priced at ₦775 per liter. However, he dismissed these claims, arguing that no importer had actually sold fuel at that rate and that Dangote remained the most affordable supplier.

“The federal government highlighted the challenge of meeting domestic demand due to its international supply commitments, which have tied up crude sales to foreign buyers,” Ukadike stated.

He further clarified that the naira-to-crude arrangement was a test-run, approved by President Bola Tinubu, to ensure lower domestic fuel costs compared to imported products.

“Although there were reports that imported fuel could sell at ₦775 per liter, the government questioned why crude was supplied to Dangote in naira while imports were priced higher. However, no importer has sold at that rate. Dangote Refinery remains the cheapest source of fuel, even compared to imports,” he asserted.

Ukadike accused market speculators and fuel import advocates of driving the narrative against the deal. He also noted that fluctuations in foreign exchange rates had already begun impacting fuel prices, showing how a single policy shift could alter market dynamics.