See more Marketers prepare ahead as Dangote stop sale of petrol in naira

• Oil marketers expect a caller substance terms and person started hoarding petroleum products up of changes
• This improvement has caused galore filling stations to adjacent down, portion others are hardly selling during regular operating hours
• The inclination is owed to the determination by the Dangote Petroleum Refinery to cease selling products successful naira

Legit.ng writer Dave Ibemere has implicit a decennary of concern journalism acquisition with in-depth cognition of the Nigerian economy, stocks, and wide marketplace trends.

Several substance stations crossed Nigeria person unopen down oregon reduced operating hours arsenic lipid marketers hoard petroleum products successful anticipation of a terms adjustment.

The determination follows the determination by the Dangote Petroleum Refinery to halt selling petroleum products successful naira arsenic the naira-for-crude talks betwixt it and NNPCL appeared to person failed.

Fuel presumption owners are hoarding substance successful anticipation of a substance terms increase Photo credit: Bloomberg/contributor
Source: Getty Images

The 650,000-barrel-per-day refinery expressed interest implicit a mismatch betwixt its income proceeds and crude lipid acquisition obligations, which are presently denominated successful U.S. dollars.

The steadfast announced in a statement:

"Dear valued customers, We privation to pass you that the Dangote Petroleum Refinery has temporarily suspended the merchantability of petroleum products successful naira. This determination is indispensable to code the imbalance betwixt our income proceeds and crude lipid acquisition obligations, which are presently denominated successful U.S. dollars.To date, our naira-denominated income person exceeded the worth of crude purchased successful naira. As a result, we indispensable temporarily set our income currency to align with our crude procurement requirements."

Marketers expect caller retail substance price

Following the Dangote Group's announcement, the outgo of loading petrol astatine backstage depots successful Lagos surged to astir N900 per litre, up from little than N850 per litre.

The summation has sparked concerns astir a potential emergence successful retail prices successful the coming days and hoarding of petroleum products.

Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), accused depot owners of profiteering, portion immoderate filling presumption operators scrambled to stockpile fuel, Punch reports.

Dangote refinery temporarily halted the merchantability of petroleum products successful naira Photo credit: nnpclimited
Source: Facebook

Ukadike criticised depot owners for profiting from the impasse betwixt the Federal Government and the Dangote refinery, stating that it was harmful to the economy, Punch reports.

He cautioned marketers against panic buying, informing that the Dangote refinery could slash prices.

Ukadike stated:

"Some depot owners are already raising prices, but we are urging our marketers not to prosecute successful panic buying. If the Dangote refinery resumes operations and reverses the price, it could effect successful important losses for them. Depot owners are taking vantage of the concern to profiteer, which is harmful to the economy."Similarly, immoderate marketers are stockpiling petrol, anticipating that prices volition emergence owed to the Dangote refinery's suspension of naira sales. They expect to nett from aboriginal terms hikes, but that whitethorn not happen. This contented volition beryllium resolved."

He warned each marketers against buying ample volumes of petrol to debar moving into debt.

He advised.

"We, the autarkic marketers, are advising our members to bounds their substance purchases. Buying ample volumes astatine inflated depot prices could pb to important superior losses."If Dangote lowers prices, those holding precocious stockpiles of petrol whitethorn look superior fiscal setbacks. Marketers should workout caution to debar specified risks."

FG schedules gathering connected Naira for crude deal

Earlier, Legit.ng reported that the national authorities of Nigeria has formed a sheet to find a solution to the naira crude statement impasse.

The sheet followed the determination by the Dangote refinery to halt the merchantability of petroleum products successful naira.

This determination by Dangote past led to the summation of petrol prices astatine backstage depots crossed the country.

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Source: Legit.ng