Independent petroleum marketers have opposed the decision by Dangote Petroleum Refinery to begin pricing some petroleum products in United States dollars, warning that the move could push up fuel prices and place more pressure on Nigeria’s foreign exchange market.
The marketers said the new pricing model could create instability in the downstream sector and eventually increase costs for consumers across the country.
Their reaction followed the refinery’s decision to quote ex-depot prices for petrol, diesel and aviation fuel in dollars for certain transactions. The development has already triggered price adjustments at some private depots in Lagos, Port Harcourt and Warri.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) described the move as a policy that could encourage dollarisation of the economy if not properly managed.
PETROAN President, Billy Gillis-Harry, said although Dangote Refinery remains a major contributor to Nigeria’s energy security, decisions affecting fuel pricing should take into account the wider impact
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