SHOCKWAVE: Dangote Refinery Halts Petrol Sales in Naira Amid Crude Allocation Crisis, Fuel Prices May Soar Beyond ₦900/Litre

The nation’s energy sector was thrown into fresh turmoil on Friday night as the Dangote Petroleum Refinery abruptly suspended petrol sales in naira, citing exhaustion of its crude-for-naira allocation.

The suspension, which takes effect Sunday, September 28, 2025, has triggered fears of skyrocketing pump prices and renewed foreign exchange pressure, as transactions may now shift to the dollar.

In an email notice to its customers, signed by the Group Commercial Operations of Dangote Petroleum Refinery & Petrochemicals, the company declared:

> “We are unable to sustain PMS sales in naira going forward. This suspension of naira sales for PMS will be effective from Sunday, 28th September, 2025. We will provide further updates regarding the resumption of supply once the situation has been resolved.”

The refinery further instructed customers who had already made naira payments for petrol to request immediate refunds.

Labour Tensions Deepen

This decision comes amid a heated dispute between the refinery and labour unions, following allegations of a mass layoff involving over 800 Nigerian workers. Unions under the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) have vowed to embark on solidarity actions nationwide if the matter is not resolved.

The refinery, however, insisted the development was part of an internal “reorganisation exercise” aimed at enhancing safety and efficiency. In a strongly-worded statement, the company said repeated acts of sabotage within its facility had forced management to overhaul its workforce.

> “This exercise is not arbitrary. It has become necessary to safeguard the refinery from repeated acts of sabotage that posed dire safety concerns and disrupted operations,” the management declared, stressing that the refinery remained a strategic national asset vital to Africa’s energy independence.

Analysts warn that the suspension of naira transactions could see petrol prices soar above ₦900 per litre, as marketers may be forced to buy products in dollars. This would worsen Nigeria’s cost-of-living crisis, already strained by galloping inflation and high exchange rates.

This is not the first time the $20 billion facility has halted naira sales. In March 2025, it took a similar decision over crude allocation shortages.

Despite public outrage, the refinery maintained that over 3,000 Nigerians remain actively employed, with new recruitment ongoing through graduate trainee and experienced hire programmes. It insisted only a “very small number” were affected by the restructuring.

But labour leaders remain unconvinced. PENGASSAN president, Festus Osifo, confirmed the sackings and vowed resistance:

> “Yes, it is true. We saw the letter late last night (Wednesday). I can assure you that they will recall all of them.”

The Dangote Refinery, commissioned with high hopes of ending Nigeria’s decades-old dependence on imported petrol, is now at the centre of both economic and industrial storm. As crude allocation disputes fester and workers’ grievances mount, Nigerians are left to grapple with the looming reality of yet another fuel crisis.