The Independent Petroleum Marketers Association of Nigeria (IPMAN) has warned that it may begin selling petrol in US dollars if Dangote Refinery insists on conducting its transactions in foreign currency.
The warning follows Dangote Refinery’s decision to temporarily suspend petrol sales in Naira until the federal government reinstates the crude-for-Naira sales arrangement. The refinery’s management stated that the move was necessary to align its sales currency with crude oil purchase obligations, which are currently denominated in US dollars.
“To date, our sales of petroleum products in Naira have exceeded the value of Naira-denominated crude we have received. As a result, we must temporarily adjust our sales currency to align with our crude procurement currency,” Dangote Refinery noted in a statement.
Reacting to this, IPMAN’s national publicity secretary, Chinedu Ukadike, expressed concerns that the policy could put significant pressure on the Naira, potentially leading to inflation and jeopardizing energy security.
“This latest development, if implemented, will definitely put pressure on the Naira. It is not a very good thing for independent marketers. If the issue of dollar crude-for-product is true at Dangote, that means we at IPMAN will also resolve to sell our fuel in dollars because it will really put pressure on us,” Ukadike said.
He further called on the federal government to intervene and ensure that Dangote Refinery continues to transact in Naira to prevent economic instability and excessive inflation.
The controversy over fuel pricing and currency denomination comes amid wider concerns about the fluctuating exchange rate and its impact on Nigeria’s energy sector.
