Oil marketers under the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) have rejected the decision by Dangote Petroleum Refinery to sell refined petroleum products in dollars instead of naira.
PETROAN Calls for Government Intervention
PETROAN urged the Federal Government to intervene and ensure that fuel transactions within Nigeria are conducted in local currency. The association’s President, Billy Gillis-Harry, expressed concerns on Tuesday, warning that this policy could worsen inflation and place additional strain on Nigeria’s already volatile foreign exchange market.
“PETROAN opposes the sale of petroleum products in dollars. Such a practice will negatively impact the economy, increase pressure on forex, and worsen inflation.”
This comes after the Dangote refinery announced last week that it would no longer sell fuel in naira, following the government’s suspension of naira-for-crude transactions with the facility.
Panic Buying and Supply Concerns
The announcement has sparked panic buying among petroleum marketers, raising fears of an impending fuel scarcity or a surge in petrol prices.
Despite the commissioning of three local refineries, including Dangote’s 650,000 barrels-per-day facility, PETROAN noted that Nigeria’s local production capacity remains insufficient to meet domestic demand.
A statement by PETROAN’s National Public Relations Officer, Dr. Joseph Obele, emphasized the importance of maintaining fuel importation, stating:
“While local production is crucial for energy security and economic growth, it is still not sufficient. The government must allow the importation of petroleum products to ensure supply stability and price control.”
Dangote Refinery Boosts Jet Fuel Exports to US
Meanwhile, the Dangote Petroleum Refinery has intensified its export of aviation fuel (JetA1) to the United States, with six vessels carrying about 1.7 million barrels arriving at US ports this month.
Ship-tracking service Kpler confirmed that another vessel, Hafnia Andromeda, is scheduled to arrive at the Everglades terminal on March 29, 2025, with 348,000 barrels of jet fuel.
A Reuters report highlighted that US jet fuel imports in March have reached a two-year high, partly due to the influx of shipments from the Dangote refinery. Analysts predict that this could lower jet fuel prices ahead of the peak summer travel season.
“The 650,000 barrels-per-day Dangote refinery is reshaping global fuel trading dynamics by becoming a major swing supplier in the Atlantic Basin,” Reuters stated.
Future Prospects for Dangote’s US Exports
Despite its growing presence in international markets, analysts believe Dangote’s jet fuel exports to the US may not be sustainable.
James Noel-Beswick, an analyst at Sparta Commodities, noted that the temporary shutdown of the Phillips 66 Bayway refinery in New Jersey created a rare opportunity for Nigeria’s fuel exports to the US. However, he cautioned that this window may soon close due to rising US fuel inventories.
“The US market may not consistently rely on Nigerian jet fuel, as local production levels remain high,” Noel-Beswick said.
Nigeria’s Petroleum Sector at a Crossroads
As the Dangote refinery ramps up production and expands its global reach, PETROAN and other stakeholders continue to push for policies that will stabilize Nigeria’s petroleum market.
PETROAN reassured Nigerians that fuel scarcity fears were unfounded, urging consumers to remain calm:
“There is no shortage of petroleum products. The government and regulators are committed to ensuring a seamless fuel supply across the country.”
