The Petroleum Products Retail Outlet Owners Association of Nigeria has warned that its members may stop buying fuel from Dangote Refinery if the company continues selling in U.S. dollars instead of Naira. The association stated that if Dangote’s pricing is not competitive, marketers will explore other options, including sourcing fuel from the Nigerian National Petroleum Company Limited or importing from abroad.
Dangote Refinery’s Shift to Dollar Transactions
Dangote Refinery recently announced that it will no longer sell petroleum products in Naira following a deadlock in discussions with NNPCL over the Naira-for-crude deal. This move has caused concern within the downstream petroleum sector, raising fears of another fuel price increase.
PETROAN’s Search for Alternatives
National President of PETROAN, Billy Gillis-Harry, said marketers are prepared for any market shifts and will seek more competitive pricing elsewhere. He mentioned that in addition to NNPCL, PETROAN is considering sourcing from other local refineries, such as Azikel Refinery in Bayelsa, which is expanding its production capacity. He also noted that fuel importation remains an option if domestic supply becomes too expensive.
“The market is preparing for any surprises. If Dangote’s prices are not competitive, we will look for alternatives,” he said.
Fuel Price Uncertainty in Nigeria
The suspension of sales in Naira by Dangote Refinery has added to market instability. Many fear that fuel prices will rise again, especially with NNPCL and Dangote Refinery yet to resolve their differences over crude supply. The coming weeks will determine whether the Federal Government and industry players can reach an agreement to stabilise petrol prices in Nigeria.