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Marketers Reject Dangote’s Dollar-Based Fuel Pricing
Independent petroleum marketers and energy experts have rejected the Dangote Petroleum Refinery’s decision to sell fuel in US dollars, warning that it could worsen Nigeria’s foreign exchange pressures and destabilise the downstream sector.
The refinery recently announced that all ex-depot prices for petrol, diesel, and aviation fuel would now be quoted in dollars, invalidating earlier naira-based invoices.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) faulted the move, saying it could gradually push Nigeria towards a dollarised economy.
PETROAN President Billy Gillis-Harry said, “This will turn Nigeria into a dollarised economy. Commercial decisions by a major player must align with national economic objectives.”
He warned that marketers forced to buy in dollars would pass the burden to consumers, adding, “It is like saying those who buy from Dangote in dollars should also sell in dollars to the masses. But we are not going to do that.”
The Independent Petroleum Marketers Association of Nigeria (IPMAN) also appealed to President Bola Tinubu to sustain the naira-for-crude arrangement, stressing that tying fuel prices to the dollar would increase pump price volatility.
Depot operators have already adjusted prices. In Port Harcourt, petrol rose by ₦113 per litre, while diesel climbed by ₦150 per litre.
Similar increases were recorded in Lagos and Warri, as marketers factored in replacement costs under the new pricing model.
Energy experts offered mixed views. Prof. Wumi Iledare argued that Dangote’s decision was a commercial response to FX risks, “Aligning revenues with major cost obligations is a standard risk-management response. It should not automatically be interpreted as abnormal pricing behaviour.”
But Prof. Dayo Ayoade of UNILAG countered that domestic transactions should remain in naira, Nigeria’s legal tender, and urged regulators to review the policy.
Industry stakeholders stressed that while Dangote Refinery has improved supply security, regulators must ensure competition and consumer protection.
Culled from The PUNCH
