Independent petroleum marketers and energy experts have rejected the Dangote Petroleum Refinery’s decision to price petroleum products in United States dollars, warning that the move could intensify foreign exchange pressures and spark new instability in the downstream oil sector.
Stakeholders, who spoke in separate interviews on Tuesday, acknowledged the refinery’s right as a private entity to make commercial decisions but expressed concerns over the broader economic implications of dollar-denominated pricing for locally consumed fuel.
The controversy erupted after Dangote Refinery notified marketers that it would quote ex-depot prices for Premium Motor Spirit (petrol), Automotive Gas Oil (diesel), and aviation fuel in dollars for gantry and coastal transactions.
The company invalidated previous naira-based invoices, prompting immediate adjustments by depot owners.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) faulted the development, arguing it could gradually push Nigeria toward a dollarised economy and undermine market stability.
PETROAN National President, Billy Gillis-Harry, warned that marketers buying in dollars would likely pass costs to consumers, describing the decision as potentially destabilising.
He called for stronger regulation and competition, including the revival of state-owned refineries.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) urged President Bola Tinubu to intervene and sustain the crude-for-naira arrangement.
IPMAN National Publicity Secretary Chinedu Ukadike said tying fuel prices to the dollar would increase pump price volatility and heighten demand for scarce foreign currency.
Following the announcement, petrol prices at some depots rose by up to ₦113 per litre, while diesel increased by as much as ₦150 per litre in certain locations.
Energy experts offered mixed reactions. Petroleum economist Prof. Wumi Iledare described the move as a legitimate commercial response to foreign exchange risks, given that crude and other inputs are dollar-linked in a deregulated market. He emphasised the need for competition to protect consumers.
However, Prof. Dayo Ayoade of the University of Lagos argued that domestic sales of petroleum products should remain in naira, Nigeria’s legal tender, even as global oil transactions are typically dollar-based.
The development has renewed debate on Nigeria’s fuel deregulation policy, with many calling on the government to ensure the crude-for-naira deal continues amid global supply uncertainties.
As of now, the Nigerian National Petroleum Company Limited and regulators are yet to issue an official position on the refinery’s pricing shift.
Click to signup for FREE news updates, latest information and hottest gists everyday
Advertise on NigerianEye.com to reach thousands of our daily users
No comments
Post a Comment
Kindly drop a comment below.
(Comments are moderated. Clean comments will be approved immediately)
Advert Enquires - Reach out to us at NigerianEye@gmail.com