Independent petroleum marketers have opposed the decision by Dangote Petroleum Refinery to begin pricing some petroleum products in United States dollars, warning that the move could push up fuel prices and place more pressure on Nigeria’s foreign exchange market.
The marketers said the new pricing model could create instability in the downstream sector and eventually increase costs for consumers across the country.
Their reaction followed the refinery’s decision to quote ex-depot prices for petrol, diesel and aviation fuel in dollars for certain transactions. The development has already triggered price adjustments at some private depots in Lagos, Port Harcourt and Warri.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) described the move as a policy that could encourage dollarisation of the economy if not properly managed.
PETROAN President, Billy Gillis-Harry, said although Dangote Refinery remains a major contributor to Nigeria’s energy security, decisions affecting fuel pricing should take into account the wider impact on the economy.
“This will turn Nigeria into a dollarised economy,” he said, warning that marketers may be forced to source scarce foreign exchange to purchase products.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) also urged President Bola Tinubu to intervene and sustain the crude-for-naira arrangement to prevent further volatility in fuel prices.
IPMAN spokesman, Chinedu Ukadike, said petroleum prices are heavily influenced by crude oil costs and exchange rates, adding that increased demand for dollars by marketers could worsen pressure on the naira and lead to higher pump prices.
Industry data showed that several depots adjusted their loading prices after the announcement, with petrol and diesel prices recording increases in some locations.
While marketers expressed concerns, some energy experts argued that the refinery’s decision was a commercial response to foreign exchange risks, since crude oil and several refinery inputs are linked to the dollar.
Others, however, maintained that petroleum products sold within Nigeria should continue to be priced in naira, which remains the country’s legal tender.
