The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has reassured the public that Dangote Refinery continues to sell petroleum products in naira, dispelling fears of a shift to dollar-denominated transactions. This comes amidst speculation that the refinery had suspended sales in the local currency, potentially leading to fuel price volatility and supply disruptions.
PETROAN Clears the Air
Speaking on the issue, PETROAN President Billy Gillis-Harry emphasized that there had been no official communication regarding any changes in the refinery’s sales policy. According to him, marketers are still purchasing fuel in naira, and Dangote Refinery has not taken any steps to create panic in the market.
“So as far as I know, up until yesterday, our members who bought products are still buying in Nigeria and naira,” Gillis-Harry stated. “And I don’t think that Dangote is looking for how to create any panic in the system.”
This clarification comes in response to widespread concerns that the refinery might stop accepting naira payments, potentially leading to increased fuel prices and supply chain disruptions across the country.
Concerns Over Dollar Transactions
Recent speculation suggested that Dangote Refinery was considering a shift to selling fuel in U.S. dollars following the Nigerian National Petroleum Company’s (NNPC) decision to discontinue naira payments for crude oil. Given that Dangote Refinery sources crude in dollars from NNPC, it is seen as a necessary adjustment to align its sales model. If this shift occurs, independent marketers and fuel distributors may face challenges in securing foreign currency for transactions, potentially increasing costs for consumers.
However, PETROAN’s statement alleviates these concerns, affirming that no such change has taken place. The association also urged Nigerians to remain calm and avoid panic buying, as the fuel supply remains stable.
Implications for the Nigerian Market
The assurance from PETROAN is a relief to fuel marketers and consumers alike. A transition to dollar-based transactions would have significant implications for Nigeria’s fuel economy, including:
- Increased Fuel Prices: A shift to dollar sales could lead to price hikes as marketers factor in forex costs.
- Strain on Independent Marketers: Many small and medium-scale fuel distributors may struggle to access foreign exchange, leading to possible disruptions in supply.
- Market Volatility: Speculation about currency shifts often triggers panic buying and artificial scarcity, which can destabilize the market.
By confirming that Dangote Refinery remains committed to naira transactions, PETROAN has provided some stability to the market and reassured both industry players and consumers.
A Call for Continued Transparency
While PETROAN’s statement has helped douse tensions, industry stakeholders continue to call for transparency from Dangote Refinery and other major petroleum suppliers. Consistent communication regarding pricing structures, currency policies, and supply chain adjustments will help maintain stability in Nigeria’s volatile fuel market.
As Nigeria continues its journey toward refining self-sufficiency, industry watchers will closely monitor developments at Dangote Refinery and other domestic refining projects to ensure that policy shifts do not negatively impact the economy.
For now, PETROAN’s confirmation provides a much-needed reprieve, reinforcing that Dangote Refinery is still transacting in naira and that fears of an imminent shift to dollar sales are, for now, unfounded.
