PETROAN threatens to abandon Dangote Refinery over dollar-only sales policy

The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has warned that its members will seek alternative fuel suppliers if Dangote Refinery continues its policy of selling petroleum products exclusively in U.S. dollars.

Speaking on Thursday, PETROAN’s National President, Billy Gillis-Harry, expressed concerns over the refinery’s recent suspension of sales in Naira, stating that retailers and marketers are prepared to explore other options if Dangote’s pricing becomes uncompetitive.

“The market is making preparations for any surprises. If there are surprises, we’ll have alternatives to go to,” Gillis-Harry said.

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He noted that potential alternatives include the Nigerian National Petroleum Company Limited (NNPCL), upcoming modular refineries like Azikel Refinery in Bayelsa, and even fuel importation.

Dangote Refinery had announced on Wednesday that it was halting sales of petroleum products in Naira, citing unresolved issues with the NNPCL over the continuation of the Naira-for-crude arrangement.

The move has fueled concerns about another potential hike in petrol prices within the downstream oil sector.

The decision marks a significant shift in Nigeria’s fuel market, where the majority of transactions have traditionally been conducted in the local currency.

PETROAN’s warning signals the possibility of increased competition and supply diversification in response to Dangote Refinery’s policy shift.