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Independent petroleum marketers have rejected Dangote Refinery’s decision to price fuel in US dollars, warning that the move could increase foreign exchange pressure and make petrol prices more volatile.
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PETROAN and IPMAN argue that domestic fuel should continue to be priced in naira, urging President Bola Tinubu to sustain the Federal Government’s crude-for-naira policy.
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The refinery’s decision has reignited debate over Nigeria’s deregulated downstream market, with stakeholders divided between commercial realities and the broader impact on consumers and the economy.
Independent petroleum marketers and energy experts have rejected Dangote Petroleum Refinery’s decision to introduce United States dollar-denominated pricing for petroleum products, warning that the move could increase pressure on Nigeria’s foreign exchange market and trigger fresh volatility in domestic fuel prices.
The criticism follows the refinery’s decision to quote ex-depot prices for Premium Motor Spirit (petrol), Automotive Gas Oil (diesel) and aviation fuel in US dollars for gantry and coastal transactions after ending naira-denominated sales.
Why marketers are pushing back
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) warned that widespread dollar-denominated fuel transactions could gradually push Nigeria towards a dollarised economy while weakening efforts to stabilise the downstream petroleum sector.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) also urged President Bola Tinubu to sustain the Federal Government’s crude-for-naira arrangement, arguing that tying domestic fuel prices directly to the dollar would expose marketers and consumers to greater exchange-rate volatility.
Speaking on the development, PETROAN National President Billy Gillis-Harry said Dangote Refinery’s contribution to Nigeria’s energy security remains significant but maintained that major commercial decisions should also consider their wider economic impact.
“This will turn Nigeria into a dollarised economy,” he said, adding that marketers purchasing products in dollars would inevitably face pressure to pass higher costs on to consumers.
He also questioned how independent marketers would consistently access foreign exchange from commercial banks to finance petroleum purchases.
Why Dangote switched to dollar pricing
Dangote Refinery recently announced that all previously issued naira-denominated Proforma Invoices and Deal Recaps for gantry and coastal transactions had become invalid following its transition to dollar-based pricing.
The refinery has argued that the move reflects changing realities in its crude procurement strategy, with a larger proportion of crude oil now being purchased in dollars while refined products have continued to be sold domestically in naira.
Industry analysts note that the resulting currency mismatch exposed the refinery to foreign exchange risks, making dollar-denominated sales a commercially rational decision despite concerns from marketers.
What it could mean for fuel prices
The policy has already begun influencing depot prices, with loading costs adjusting across major petroleum hubs as marketers factor higher replacement costs into future purchases.
Industry pricing data showed petrol prices rising by as much as ₦113 per litre at some depots, while diesel increased by up to ₦150 per litre in certain locations shortly after the announcement.
The development has renewed debate over Nigeria’s petroleum deregulation policy, with stakeholders divided over whether the shift represents prudent commercial risk management or a move that could further increase fuel price volatility for consumers.
As discussions continue, marketers are urging the Federal Government to preserve the crude-for-naira framework, arguing that maintaining domestic transactions in naira remains critical to improving market stability and cushioning consumers from exchange-rate shocks.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
