Naira-for-Crude: Marketers dismiss fuel scarcity rumours, caution against panic buying

• Petroleum marketers have dispelled fuel scarcity rumours and cautioned against panic buying
• They gave assurances of the government and other stakeholders’ commitment to product availability
• The marketers say the naira-for-crude arrangement is still under review

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has dismissed insinuations that the temporary suspension of supply of petrol in naira by Dangote Refinery would lead to fuel scarcity.

PERTROAN, in a statement released on Tuesday, March 25, by its National Public Relations Officer, Dr Joseph Obele, cautioned the public against panic buying of petroleum products across the country.

Obele noted that there is no cause for panic buying given a stable supply of petroleum products by functional refineries of the Nigerian National Petroleum Company Limited (NNPC Ltd.), modular refineries, and importers.

“We wish to reassure the public that this is not a justification for panic buying.

“The NNPC Ltd. has two functional refineries, and there are other modular refineries, as well as importers that are also supplying petroleum products to the market.

“Therefore, we see no reason for the threat of panic buying.

“We urge Nigerians to remain calm and go about their normal activities, as there is no shortage of petroleum products,” he said.

Government, stakeholders’ commitment to product availability

PETROAN National PRO further stated that the Federal Government, Ministry of Petroleum Resources, and regulatory agencies were committed to ensuring a seamless supply of petroleum products to meet the demands of Nigerians.

He also urged that the window for the importation of petroleum products into the country remained open as local production may not be adequate to meet demand.

“We believe that promoting local production will not only guarantee energy security but also create jobs and stimulate economic growth.

“However, the petroleum marketing body recognised that local production alone may not be sufficient to meet the country’s demand for petroleum products, and thus 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 urge Nigerians to remain calm and go about their normal activities without fear of scarcity,” he said.

PETROAN says naira-for-crude arrangement under review

Obele further stated that the test-run for the naira-for-crude initiative lasted for a six-month duration which has elapsed, adding that the Federal Government was reviewing the policy to determine its future.

He clarified that contrary to reports, the policy was not terminated but rather undergoing a review after the initial test run period.

“We understand that the ministry is still considering the feasibility and sustainability of the naira-for-crude initiative.

“We urged the ministry to continue its deliberations, taking into account the interests of all stakeholders, including petroleum products retailers, to ensure that any policy decisions align with the nation’s economic goals,” Obele added.

PETROAN condemns the sale of petrol in dollars

The statement further noted that the National President of the association, Dr Billy Gillis-Harry, earlier revealed PETROAN’S opposition to the sale of petroleum products or any other products within Nigeria in dollars.

Gillis-Harry said that such a practice would hurt 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 said.

Recall that the Independent Petroleum Marketers of Nigeria (IPMAN) earlier warned that petrol marketers may be forced to sell petroleum products to Nigerians in dollars following the temporary suspension of the sale of petroleum products in naira by Dangote Refinery, citing an imbalance between its sales proceeds and crude oil purchase obligations, which are denominated in US dollars.

IPMAN urges Nigerians to avoid panic buying, assures sufficient fuel

Meanwhile, TheRadar earlier reported that the Independent Petroleum Marketers Association of Nigeria (IPMAN) advised Nigerians not to engage in panic buying, assuring that the country has an adequate fuel supply.

Mr Ukadike Chinedu, the Publicity Secretary of IPMAN, disclosed this statement on Sunday, December 23, in Abuja.