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Oil marketers yesterday, rejected the reintroduction of petroleum product sales in United States dollars by the Dangote Petroleum Refinery.
They warned that the policy could worsen pressure on the foreign exchange market, fuel inflation and force dealers to seek alternative sources of supply.
Speaking with Daily Sun, National President of Petroleum Products Retail Outlets Owners Association of Nigeria(PETROAN) Mr. Billy Gillis-Harry,said while the refinery has the right to determine its commercial model, marketers are equally free to source products from suppliers whose payment terms align with the realities of the Nigerian market.
Gillis-Harry, said the association’s members conduct their businesses in naira and cannot be expected to source scarce foreign exchange to buy petroleum products.
“As PETROAN, we are not importers and, as such, don’t have dollars because the country does not print dollars. Our legal medium of exchange in Nigeria is the naira, not the dollar.
“Our members will have to reassess where we buy products going forward because we won’t be able to continue patronage along that line,” he said.
Gillis-Harry warned that the decision could have significant implications for the downstream petroleum market, especially at a time of heightened geopolitical tensions involving Iran and the United States, which have continued to drive volatility in global crude oil prices.
He said the development underscores the urgent need for the Nigerian National Petroleum Company (NNPC) Limited to revive the country’s state-owned refineries to guarantee energy security and reduce reliance on private refiners.
“If NNPC had managed the refineries more efficiently, there would have been no reason for it to buy shares in the Dangote refinery.
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“NNPC should hurry and conclude talks with the Chinese on how best to run the refineries because that would be our saving grace,” he added.
Also speaking, PETROAN’s Public Relations Officer, Dr. Joseph Obele, warned that denominating domestic petroleum transactions in dollars could further strain Nigeria’s foreign exchange market by increasing demand for scarce foreign currency, weakening the naira and worsening inflationary pressures across the economy.
According to him, higher foreign exchange costs would ultimately be passed on to consumers through increased fuel prices, transportation costs and the prices of goods and services, thereby compounding the country’s inflation challenges.
To address the situation, Obele urged the Federal Government to strengthen and expand the crude-for-naira policy to ensure domestic refineries receive sufficient crude oil to meet their production requirements.
He also called on NNPC Limited to allocate more crude oil to local refineries to reduce dependence on imported crude and sustain naira-denominated transactions.
Obele further urged the Central Bank of Nigeria (CBN), the Federal Ministry of Petroleum Resources and other relevant regulatory agencies to provide clear policy direction on the appropriate currency for domestic petroleum transactions in order to preserve confidence in the naira.
He said the government should intensify efforts to stabilise the foreign exchange market through increased crude oil production, improved export earnings and policies that strengthen the local currency.
The PETROAN spokesman also urged all stakeholders in the petroleum industry to ensure that commercial decisions support not only business sustainability but also Nigeria’s broader economic stability, energy security and long-term national interest.
“While every investor deserves a fair return on investment, policies and business decisions within strategic sectors such as petroleum should carefully balance commercial realities with their wider implications for the Nigerian economy and the welfare of citizens,” Obele said.
