Independent petroleum marketers have criticised the decision by Dangote Petroleum Refinery to price some petroleum products in United States dollars, cautioning that the policy could drive up fuel prices and intensify pressure on Nigeria’s foreign exchange market.
According to the marketers, the new pricing approach may create uncertainty in the downstream petroleum sector while increasing operational costs that could ultimately be passed on to consumers nationwide.
The concerns followed Dangote Refinery’s announcement that ex-depot prices for petrol, diesel and aviation fuel would be quoted in dollars for selected transactions. The move has already prompted price adjustments at several private depots in Lagos, Port Harcourt and Warri.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) expressed reservations over the development, describing it as a policy that could encourage the dollarisation of Nigeria’s economy if left unchecked.
PETROAN President, Billy Gillis-Harry, acknowledged the refinery’s strategic role in strengthening the country’s energy security but stressed that pricing decisions should also reflect their broader economic implications.
“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 appealed to President Bola Tinubu to maintain the crude-for-naira arrangement, arguing that the policy is necessary to minimise volatility in petroleum prices.
IPMAN spokesman, Chinedu Ukadike, explained that fuel prices are largely determined by crude oil costs and exchange rate movements. He noted that forcing marketers to seek additional dollars could heighten pressure on the naira and translate into higher pump prices.
Industry figures indicated that a number of depots reviewed their loading prices following the refinery’s announcement, with increases recorded for both petrol and diesel in some locations.
Despite the concerns raised by marketers, some energy analysts defended the refinery’s decision, describing it as a commercial response to foreign exchange risks given that crude oil and several refinery inputs are dollar-denominated.
However, other stakeholders insisted that petroleum products sold within Nigeria should continue to be priced in naira, maintaining that it remains the country’s legal tender.
