Marketers warn fuel could be sold in dollars if naira-for-crude deal is not restored

Petroleum marketers have warned that Nigerians could begin paying for petrol, diesel and other refined petroleum products in US dollars if the Federal Government fails to restore the naira-for-crude arrangement with the Dangote Refinery.

 

The National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, made the warning in an interview at the weekend.

 

The development follows Dangote Refinery’s decision last week to resume the sale of refined petroleum products in US dollars, effectively suspending the naira-for-crude arrangement that allowed marketers to purchase products in naira.

 

Although the Federal Government has not officially commented on the development, reports indicate that discussions are ongoing with the refinery to restore the agreement.

 

Gillis-Harry urged the government to conclude the negotiations quickly to prevent additional hardship for Nigerians.

 

“Nigerians may start buying petrol in US dollars if the Federal Government does not intervene in the naira-for-crude deal with Dangote Refinery. We hope the downstream oil sector will not be dollarised to that extent,” he said.

 

He noted that restoring the arrangement would help shield consumers from the impact of global energy price fluctuations.

 

The warning comes as depot owners and marketers have already increased the prices of petroleum products.

 

Petrol currently sells for between ₦1,155 and ₦1,220 per litre, while diesel costs between ₦1,700 and ₦1,800 per litre in Abuja and surrounding areas.