FUEL, DIESEL COULD BE SOLD IN US DOLLARS, MARKETERS WARN NIGERIANS
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By:Tajudeen Aminat
Petroleum products marketers have warned that Nigerians could soon begin paying for petrol, diesel and other refined petroleum products in United States dollars if the Federal Government fails to restore the Naira-for-crude supply arrangement with 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 with the PRESS over the weekend.
His comments followed Dangote Refinery’s decision last week to resume the sale of refined petroleum products in US dollars, a move widely seen as signalling the suspension of the Naira-for-crude arrangement that allowed marketers to purchase products from the 700,000-barrels-per-day refinery in naira.
Although the Federal Government has yet to issue an official statement on the development, reports suggest discussions are ongoing to revive the Naira-for-crude deal.
Gillis-Harry urged the government to conclude negotiations quickly, warning that delays could worsen the burden on consumers and expose them to fluctuations in global energy prices.
According to him, government intervention is necessary to prevent the downstream petroleum sector from becoming fully dollar-denominated.
“If the Federal Government does not intervene in the Naira-for-crude arrangement with Dangote Refinery, Nigerians may soon begin buying petrol in US dollars. We hope the downstream sector does not become dollarised to that extent,” he said.
The warning comes amid rising fuel prices, with marketers and depot owners recently increasing ex-depot and pump prices for petrol and diesel.
Petrol currently sells for between N1,155 and N1,220 per litre, while diesel is priced between N1,700 and N1,800 per litre in Abuja and surrounding areas.
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