Dangote Dollar Pricing: Marketers Warn FG That Nigerians May Buy Fuel in USD
- Petroleum marketers sent a warning to the Federal Government over Dangote Refinery's shift to US dollar pricing for refined fuel
- PETROAN's national president said the downstream oil sector risks full dollarisation if the Naira-for-crude deal is not restored quickly
- The FG had not officially responded to Dangote Refinery's pricing change days after the refinery suspended the naira-based crude deal
Petroleum products retailers have warned that ordinary Nigerians could soon pay for petrol, diesel, and other refined products in US dollars if the Federal Government fails to act quickly to restore the Naira-for-crude arrangement with Dangote Refinery.
Billy Gillis-Harry, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), raised the alarm in a weekend interview, saying that a prompt resolution of the stalled deal was critical to shielding consumers from further hardship.
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Dangote Refinery's dollar pricing shift
The warning follows Dangote Refinery's decision last week to begin selling refined petroleum products in US dollars, a move that effectively signalled the suspension of the Naira-for-crude deal, according to a report by Channels.
Under that arrangement, off-takers of products from the 700,000-barrel-per-day refinery were permitted to purchase fuel in naira rather than foreign currency.
Days after the pricing change took effect, the Federal Government had yet to make any official statement on the matter, though reports indicated that talks between government officials and the refinery may have begun behind the scenes.
Gillis-Harry said the government needed to bring those discussions to a close without delay.
"Nigerians may start buying petrol in US dollars if the Federal Government does not intervene in the Naira-for-crude deal with Dangote Refinery," he said. "We hope the downstream oil sector will not be dollarised to that extent."
Fuel prices already rising
The concern comes as depot owners and marketers had already adjusted ex-depot and retail prices upward ahead of the dollar pricing announcement. Petrol currently sells for between N1,155 and N1,220 per litre in Abuja and surrounding areas, while diesel is priced between N1,700 and N1,800 per litre.
Source: Getty Images
Gillis-Harry said federal intervention remained the most reliable buffer against the kind of global energy price volatility that could make fuel unaffordable for most Nigerians if the market were to be fully dollarised.
Dangote ends naira fuel sales
Legit.ng earlier reported that Nigeria's downstream oil sector has entered another major turning point after Dangote Petroleum Refinery announced that it has ended fuel sales in naira, switching instead to U.S. dollar-denominated transactions.
Under the new pricing regime, petrol (Premium Motor Spirit) will now sell at $0.779 per litre, diesel (Automotive Gas Oil) at $1.087 per litre, while aviation fuel (ATK) will be priced at $0.985 per litre, according to data from PetroleumPriceNG.
The decision has sparked widespread debate across the country's energy industry, with many analysts warning that it could trigger another round of fuel price increases if the naira weakens further against the dollar.
Source: Legit.ng
