Independent petroleum marketers and energy experts have criticised Dangote Petroleum Refinery’s decision to price petroleum products in United States dollars, warning that the move could increase pressure on Nigeria’s foreign exchange market, raise fuel prices and destabilise the downstream sector.
The controversy followed the refinery’s announcement that Premium Motor Spirit (petrol), Automotive Gas Oil (diesel) and aviation fuel would now be sold in dollars for gantry and coastal transactions. Dangote also informed marketers that previously issued naira-based payment invoices were no longer valid.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) warned that the decision could gradually push Nigeria towards a dollarised economy. Its National President, Billy Gillis-Harry, said while Dangote Refinery has the right to make business decisions, pricing fuel in dollars could hurt marketers, increase costs for consumers and create uncertainty in the market. He also urged the Nigerian National Petroleum Company Limited (NNPC) to revive the country’s refineries to encourage competition.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) appealed to President Bola Tinubu to intervene by sustaining the crude-for-naira arrangement, arguing that fuel prices are already heavily influenced by crude oil prices and exchange rates. The association warned that forcing marketers to source scarce foreign currency would likely increase pump prices and worsen volatility.
Following the announcement, several private depots in Lagos, Port Harcourt and Warri adjusted their loading prices. Industry data showed petrol prices rose by as much as ₦113 per litre at some depots, while diesel prices increased by up to ₦150 per litre.
Energy experts expressed mixed opinions on the policy. Petroleum economist Prof. Wumi Iledare described the move as a legitimate commercial strategy to manage foreign exchange risks, noting that refinery operations and crude procurement are largely dollar-denominated. However, University of Lagos energy expert Prof. Dayo Ayoade argued that petroleum products sold within Nigeria should be priced in naira, the country’s legal tender, and called on the Central Bank of Nigeria (CBN), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and the Federal Competition and Consumer Protection Commission (FCCPC) to review the policy.
The Chief Executive Officer of Petroleumprice.ng, Jeremiah Olatide, also urged the Federal Government to intervene and revisit the crude-for-naira agreement, warning that dollar-based domestic fuel sales could further increase the financial burden on Nigerians.
The development has sparked a wider debate over how Nigeria should balance market deregulation, private investment, foreign exchange realities and consumer protection as Dangote Refinery continues to play a dominant role in the country’s fuel supply.