- The Petroleum Products Retail Outlets Owners Association of Nigeria confirmed that Dangote Refinery still sells petrol in naira
- The association called for a naira-denominated sale of crude oil
- PETROAN said product prices would continue to fluctuate based on landing costs and other factors
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has confirmed that Dangote Refinery has not yet started selling petroleum products in dollars, despite earlier concerns.
The National President of PETROAN, Billy Gillis-Harry, stated this while appearing as a guest on Arise TV’s programme on Wednesday, March 26.
He said despite talks of a possible suspension, the association had not been formally notified of any changes in fuel sales, confirming that its members still bought petrol in naira from the refinery as of Wednesday.
“So as far as I know, up until yesterday, our members who bought products are still buying in Nigeria and naira. And I don’t think that Dangote is looking for how to create any panic in the system.
“But he’s also crying out loud for how the business of the refinery should be stable, which any businessman should do.
“But as far as buying in US dollars as of today, I cannot confirm that that has happened,” Gillis-Harry said.
Dangote Refinery temporarily halted petrol supply in naira
Recall that on Wednesday, March 19, Dangote Refinery announced a temporary halt in the supply of petroleum products in naira.
The refinery said the decision is to avoid a mismatch between sales proceeds and crude oil purchase obligations, which are currently denominated in US dollars.
Dangote Refinery’s decision follows reports that the Nigerian National Petroleum Company Limited (NNPCL) might have stopped the sale of crude in naira to the Dangote Refinery.
The naira-for-crude deal, which officially commenced on October 1, 2024, following approval by the Federal Executive Council (FEC), was designed to supply domestic refineries with crude oil in exchange for refined petroleum products.
Despite several meetings to resolve the issue among the parties, no agreement has been reached.
PETROAN urges naira-denominated sale of crude oil
Gillis-Harry further called for the sale of Nigerian crude oil in naira, stressing that the naira-for-crude policy should be maintained.
He also stressed the need for stakeholders’ input in the ongoing renegotiation of the arrangement to adequately weigh its pros and cons.
“And if for some reason that decision is going to be reviewed, my opinion is that it should be done in a full stakeholder value chain, so that way we do not just think that the government woke up on just these two policies.
“There is a stakeholder forum that’s already set up for the industry. It’s called the Petroleum Industry Stakeholder Forum that is being headed by the Minister of Petroleum (Oil). And we believe that this decision should be presented to the stakeholders so we can all make input as to the pros and cons of any of these policies,” he stated.
‘Prices will continue to fluctuate based on landing costs, others’
The PETROAN President stated that product prices will continue to fluctuate based on factors like landing costs and others, adding that it cannot guarantee either an increase or a decrease in prices.
“The price of petroleum products, especially PMS, is dependent on different parameters, mostly the cost for production, cost for delivery, and the total cost of landing. So if there is a shift in any one of these, it will obviously impact the price.
“If the cost goes down, then we’ll have lower prices; if the cost goes up, then we’ll have higher prices.
“So it’s not fixed, and we do hope that it will keep this up-and-down movement until sometime we’ll be able to deliver it on a particular average,” he added.
Naira-for-crude: Fuel prices to rise as landing cost of imported petrol goes up
Meanwhile, TheRadar earlier reported that the price of Premium Motor Spirit (PMS), commonly known as petrol, could rise further as the landing cost of imported fuel has surged.
This increase follows a significant uptick in the importation of petrol, compounded by the ongoing suspension of the sale of petroleum products in naira by the Dangote Refinery due to a dispute with the Federal Government over the naira-for-crude deal.
