Oil marketers under the aegis of the Petroleum Products Retail Outlets Owners Association of Nigeria have rejected the decision by the Dangote Petroleum Refinery to sell refined petroleum products in dollars.

PETROAN urged the Federal Government not to allow the Lagos-based plant to sell in dollars to Nigerian marketers. The association’s President, Billy Gillis-Harry, disclosed this on Tuesday in a chat with newsmen.

This came as the refinery intensified the export of fuel to foreign nations, exporting about two million barrels of aviation fuel to the United States.

Also, the Manufacturers Association of Nigeria declared that the production of polypropylene by the Dangote refinery would revive Nigeria’s struggling textile industry and save the country $267m in import costs.

Last week, the Dangote refinery announced that it would no longer sell fuel to customers in naira as the Federal Government had suspended the sale of crude to the facility in naira.

Reacting to this on Tuesday, the PETROAN leader said the announcement by Dangote created tension among marketers who now panic-buy petrol over fear of possible scarcity or price surge.

According to him, allowing the sale of fuel in dollars will hurt the economy, bring undue pressure, and worsen inflation.

“PETROAN opposes the sale of petroleum products or any other products within Nigeria in dollars. We believe that such a practice would have an adverse impact on the economy, bringing undue pressure on foreign currency and exacerbating Nigeria’s already challenging inflationary situation.

“We urge the government to ensure that all transactions within the country are conducted in the local currency, the naira, to protect the economy and the welfare of Nigerians,” he stated.

PETROAN also raised concerns over the country’s inability to meet the growing demand for petroleum products despite the operationalisation of three local refineries in Nigeria.

It noted that though efforts were being made to boost local production, the supply from these refineries was still insufficient to meet the country’s needs.

In a statement signed by the association’s National Public Relations Officer, Dr Joseph Obele, PETROAN highlighted that the Nigerian National Petroleum Company Limited has two functional refineries, while the 650,000 barrels per day capacity Dangote refinery is also in operation.

Also, several modular refineries and importers are contributing to the petroleum supply chain.

But the association noted that the local production of a combined capacity of about 835,000 barrels per day cannot adequately cater to the country’s daily petroleum demand.

The marketers mentioned that with the current shortfall of local production capacity, the window for importing petroleum products must remain open.

PETROAN argued that allowing the importation of petroleum products would help maintain a stable and sustainable supply in the country, while also fostering healthy competition and keeping prices under control.

“PETROAN remains a strong advocate for the local production of petroleum products. We believe that promoting local production will not only guarantee energy security but also create jobs and stimulate economic growth.

“We also recognize that local production alone may not be sufficient to meet the country’s demand for petroleum products. Therefore, PETROAN supports the position that the window for importation of petroleum products should remain open. This will ensure that the country has a stable and sustainable supply of petroleum products, while also promoting competition and keeping prices in check.

“We are optimistic that the Ministry of Petroleum Resources will continue to work in the best interest of Nigeria and come up with policies and solutions that will ensure the sustainable supply of petroleum products,” the statement added.

The association also expressed concern over the recent panic buying of petroleum products that has been observed nationwide following the temporary suspension of sales in naira by the Dangote refinery.

According to the group, this situation should not serve as a justification for panic buying.

“We wish to reassure the public that this is not a reason for panic. There is no shortage of petroleum products,” PETROAN stated, urging Nigerians to remain calm and continue their daily activities without fear of scarcity.

The association further emphasized that the Federal Government, the Ministry of Petroleum, and relevant regulatory agencies are committed to ensuring a seamless supply of petroleum products.

Dangote exports JetA1

The Dangote Petroleum Refinery’s export of aviation fuel (JetA1) to the United States is set to challenge domestic producers’ economics in the largest fuel-consuming nation.

Six vessels carrying about 1.7 million barrels of jet fuel from the Dangote refinery arrived at US ports this month, according to data from ship-tracking service Kpler.

Another vessel, Hafnia Andromeda, is set to arrive at the Everglades terminal on March 29. 2025, with a load of about 348,000 barrels of jet fuel.



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