The regulator of the midstream and downstream petroleum sector has told The PUNCH exclusively that the Dangote Petroleum Refinery has not violated any provision of the Petroleum Industry Act by opting to sell fuel in dollars instead of naira.
Multiple senior sources within the regulatory agency, who spoke on condition of anonymity, said the refinery has the right to recover its costs if it has been purchasing crude oil in dollars.
According to the officials, the Petroleum Industry Act allows operators to earn returns on their investments and recover eligible costs.
“It’s a pretty straightforward issue. The naira-for-crude deal is not to Dangote’s advantage right now. They are sourcing a lot offshore. And with the crisis in the Middle East, the refinery has to recover costs now. It has to survive.
“Basically, to be fair to Alhaji Aliko Dangote, he has tried, if you look at it. He has absorbed a lot. But maybe he has reached a breaking point. So he has to do stuff to recover costs. And that’s why he wants to share that burden with off-takers,” one source said.
