Alarm Raised! Nigerians May Soon Pay For Petrol In U.S. Dollars As Dangote Refinery Faces Fresh Crisis

The National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, issued the warning over the weekend.

His comments come just days after the Dangote Refinery resumed selling refined petroleum products in US dollars, effectively suspending the naira-for-crude policy.

Under the arrangement, marketers and other off-takers purchased fuel from the 700,000-barrels-per-day refinery using the naira, a policy introduced to reduce pressure on foreign exchange demand and help stabilise domestic fuel prices.

Although the Federal Government has yet to officially react to the refinery’s decision, reports indicate that discussions are ongoing to revive the naira-for-crude agreement.

Reacting to the development, Gillis-Harry urged the government to conclude negotiations quickly to prevent another surge in fuel prices that could further worsen the economic burden on Nigerians.

He maintained that restoring the arrangement would protect consumers from the impact of rising global energy prices.

According to him, Nigerians could eventually be forced to buy petrol in US dollars if the government fails to intervene.

“We hope the downstream oil sector will not be dollarised to that extent,” he said.

The PETROAN president warned that allowing fuel transactions to be fully tied to the US dollar would place additional pressure on Nigerians already struggling with the rising cost of living.

Industry stakeholders have also argued that reinstating the naira-for-crude policy would ease demand for foreign exchange and help maintain stability in the domestic fuel market.

The warning follows a recent increase in ex-depot and retail prices of petrol and diesel by depot owners and marketers.

Currently, petrol sells for between ₦1,155 and ₦1,220 per litre, while diesel costs between ₦1,700 and ₦1,800 per litre in Abuja and neighbouring areas.

Stakeholders are now awaiting the outcome of ongoing discussions between the Federal Government and the Dangote Refinery over the future of the naira-for-crude policy.