Chinedu Ukadike, the spokesman for the Independent Petroleum Marketers Association of Nigeria (IPMAN), has stated that the suspension of the naira-to-crude deal between Dangote Refinery and the federal government was triggered by speculation.
Since the term of the naira-to-crude agreement it had made with Nigeria National Petroleum Company Limited (NNPCL) had passed, Dangote Refinery declared it was stopping the pricing of its fuel sales.
Speaking in an interview with News Central, on Tuesday, Ukadike stated that market jobbers who did not want the importation of petrol products to stop were responsible for the speculation leading to a halt in the naira-to-crude deal.
The IPMAN spokesman explained that the government was looking at why crude oil would be sold to Dangote in naira when imported products can be sold at ₦775.
He, however, faulted the speculation, noting that no importer sold the product at such a price. He said only Dangote sells products cheaper than all others.
His words: “The federal government stated their challenges of not having enough for domestic supply, as a result of their international commitment and how they have locked up the sales of crude to some international buyers.
“This issue of naira-to-crude was just a test run and expressly approved by Mr President to be able to ensure that the product cost is a little bit more cheaper than the one that is been imported.
“It was also reported last two weeks that imported products can be sold at ₦775. If that be the case, federal government is also looking at why were we supplying Dangote product in naira and imported product is being sold at ₦775.
“Although it was speculated, none of the importers have sold product at that cost. Dangote remains the only refinery that sells petroleum product cheaper in all ramifications, even those that are being imported.
“Most of those speculations are being thrown into the market by market seekers and jobbers who don’t want to see reverse in importation of petroleum product. But definitely, we find out that within this week under review dollar has increased. So one little policy has changed the narrative and changed the pump price.”
