Nigeria’s petroleum market is on the brink of chaos as marketers reject the Dollar-for-petrol policy introduced by the Dangote Refinery. The policy requires marketers to pay for petroleum products in dollars. It has been met with fierce resistance. Marketers argue that it will lead to a sharp increase in fuel prices. They also believe it will exacerbate the country’s economic woes.
The Dangote Refinery, which is Nigeria’s largest refinery. Announced last week that it would no longer sell petroleum products to marketers in naira. Instead, marketers would be required to pay in dollars. This decision is meant to stabilize the refinery’s operations. It also aims to ensure the sustainability of its business.
However, marketers under the aegis of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) have rejected the policy. They argue that it is unrealistic. They also claim it will lead to a sharp increase in fuel prices.
According to the President of PETROAN, Billy Gillis-Harry, the Dollar-for-petrol policy will have far-reaching consequences for the Nigerian economy. He argued that the policy will lead to a sharp increase in fuel prices, which will have a ripple effect on the entire economy.
“The Dollar-for-petrol policy is unrealistic and will lead to a sharp increase in fuel prices. This will have a ripple effect on the entire economy, leading to higher costs of production, transportation, and food prices,” Gillis-Harry said.
Meanwhile, the Dangote Refinery has begun exporting fuel to the United States, with six vessels carrying about 1.7 million barrels of jet fuel arriving at US ports this month. The refinery has also announced plans to increase its fuel exports to other countries, including Europe and Asia.
The Dollar-for-petrol policy and Dangote’s fuel exports to the US have significant implications for Nigeria’s economy. According to analysts, the policy will lead to a sharp increase in fuel prices, which will have a ripple effect on the entire economy.
“The Dollar-for-petrol policy will lead to a sharp increase in fuel prices, which will have a ripple effect on the entire economy. This will lead to higher costs of production, transportation, and food prices, which will negatively impact the economy,” said Dr. Muda Yusuf, Director-General of the Lagos Chamber of Commerce and Industry.
To address the crisis, PETROAN has called on the Federal Government to intervene. It urges finding a solution that will not harm the economy. The association has also urged the government to consider the implications of the Dollar-for-petrol policy on the economy and find alternative solutions.
“The Federal Government needs to intervene and find a solution that will not harm the economy. We urge the government to consider the implications of the Dollar-for-petrol policy on the economy and find alternative solutions,” Gillis-Harry said.
The Dollar-for-petrol policy introduced by the Dangote Refinery has sparked a crisis in Nigeria’s petroleum market. Marketers have rejected the policy. They argue it will lead to a sharp increase in fuel prices. It will also exacerbate the country’s economic woes. The Federal Government needs to intervene and find a solution that will not harm the economy.