PETROAN assures Nigerians of fuel supply stability amid Naira-for-Crude controversy

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has dismissed fears of an impending fuel scarcity, assuring Nigerians that the controversy surrounding the Naira-for-crude arrangement poses no threat to the country’s fuel supply.

In a statement issued on Tuesday by PETROAN’s National Public Relations Officer, Joseph Obele, the association reassured the public that there is no cause for panic buying of petroleum products.

PETROAN debunked speculations that the temporary suspension of Naira sales by the Dangote Refinery could disrupt fuel availability.

It emphasized that the fuel supply chain remains robust, with the Nigerian National Petroleum Company Limited (NNPC Ltd.), modular refineries, and importers ensuring steady distribution.

“We wish to reassure the public that this is not a justification for panic buying. The NNPC Ltd. has two functional refineries, and there are other modular refineries, as well as importers, that are also supplying petroleum products to the market.

“Therefore, we see no reason for the threat of panic buying. We urge Nigerians to remain calm and go about their normal activities, as there is no shortage of petroleum products,” the statement read.

Obele further stressed that fears of a fuel crisis were baseless, as the government and regulatory agencies are committed to maintaining an uninterrupted supply of petroleum products nationwide.

READ ALSO: Petrol marketers may be forced to sell in dollars amidst Naira-for-crude crisis

“We believe that promoting local production will not only guarantee energy security but also create jobs and stimulate economic growth.

“However, the petroleum marketing body recognized that local production alone may not be sufficient to meet the country’s demand for petroleum products, and thus supports the position that the window for importation of petroleum products should remain open.

“This will ensure that the country has a stable and sustainable supply of petroleum products, while also promoting competition and keeping prices in check.

“We urge Nigerians to remain calm and go about their normal activities without fear of scarcity,” he said.

Addressing the ongoing concerns about the Naira-for-Crude policy, PETROAN clarified that the first phase of the initiative, which lasted six months, had concluded and is currently under federal government review.

Contrary to reports of its termination, Obele explained that authorities are still evaluating its feasibility and long-term sustainability.

“We understand that the ministry is still considering the feasibility and sustainability of the Naira-for-Crude initiative,” he stated.

PETROAN urged the government to carefully assess the interests of petroleum product retailers and other key stakeholders before making final decisions on the policy.

In addition to addressing supply concerns, PETROAN’s National President, Dr. Billy Gillis-Harry, voiced strong opposition to the sale of petroleum products in foreign currency within Nigeria. He cautioned that such a move could have serious economic repercussions.

“We urge the government to ensure that all transactions within the country are conducted in the local currency, the Naira, to protect the economy and the welfare of Nigerians,” Gillis-Harry stated.

READ ALSO: Dangote Refinery slashes petrol price to N815/Litre amid intense market competition

He further advocated for a review of the Petroleum Industry Act (PIA) to align with current realities in the petroleum sector, ensuring that policies effectively support local production and market stability.

Earlier reports indicated that the Dangote Refinery had decided to cease selling petroleum products in Naira due to an imbalance between its sales revenue and crude oil purchases, which are priced in U.S. dollars.

The decision has sparked concerns within the industry, with the Independent Petroleum Marketers Association of Nigeria (IPMAN) warning that its members may consider selling fuel in dollars if the situation persists.

As the federal government reviews the Naira-for-Crude arrangement, industry stakeholders continue to emphasize the need for policies that ensure both economic stability and a steady supply of petroleum products for Nigerians.