Independent petroleum marketers and energy experts have rejected the Dangote Petroleum Refinery’s decision to introduce United States dollar-denominated pricing for petroleum products, warning that the move could worsen foreign exchange pressures and trigger fresh instability in the downstream sector.
The stakeholders, who spoke in separate interviews with The PUNCH on Tuesday, argued that while the refinery, as a private business, had the right to make commercial decisions, pricing locally consumed petroleum products in dollars could have wider economic implications
The Petroleum Products Retail Outlets Owners Association of Nigeria faulted the development, saying dollar-based fuel transactions could gradually push the country towards a dollarised economy and undermine efforts to stabilise the petroleum market.
The Independent Petroleum Marketers Association of Nigeria, on its part, urged President Bola Tinubu to urgently intervene and ensure the continuation of the crude-for-naira arrangement, warning that tying fuel prices to the dollar could increase pump price volatility.
Energy experts, however, offered divergent views on the policy, with some arguing that the refinery’s decision was a commercial response to foreign exchange risks associated with crude procurement and refinery operations, while others insisted that domestic fuel sales should remain anchored on the naira as Nigeria’s legal tender.
