Oil marketers under the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) have opposed Dangote Petroleum Refinery’s decision to sell refined petroleum products in dollars.
They urged the Federal Government to prevent the refinery from implementing the policy, warning that it could worsen inflation and put undue pressure on the economy.
Speaking to journalists on Tuesday, PETROAN President Billy Gillis-Harry expressed concern over the move, especially as Dangote continues exporting fuel to foreign markets, including two million barrels of aviation fuel to the United States.
“This practice will negatively impact the economy, intensify pressure on foreign currency, and aggravate Nigeria’s inflation crisis.
“We urge the government to ensure that all transactions within the country are conducted in naira,” he stated.
PETROAN also raised concerns over the country’s inability to meet domestic fuel demand despite having three operational refineries, including the Nigerian National Petroleum Company Limited’s refineries and the 650,000 barrels-per-day Dangote Refinery.
“They emphasized that the combined local production capacity of about 835,000 barrels per day remains inadequate, necessitating continued fuel imports to maintain stability.
The group also addressed the recent panic buying triggered by the refinery’s temporary suspension of sales in naira.
PETROAN assured Nigerians that there was no shortage of petroleum products and urged the public to avoid unnecessary stockpiling.
Meanwhile, Dangote’s refinery has ramped up fuel exports, particularly aviation fuel, with shipments to the United States expected to influence global fuel pricing.
Six vessels carrying about 1.7 million barrels of jet fuel from the refinery arrived at US ports this month, according to shipping data.
Trade analysts suggest that this influx could lower jet fuel prices in the US ahead of the peak summer travel season.
However, experts believe Dangote’s refinery may not be a consistent supplier to the US market, as the opportunity arose due to temporary refinery maintenance in New Jersey.
Dangote’s Polypropylene Production to Revive Nigeria’s Textile Industry
The Manufacturers Association of Nigeria (MAN) has lauded Dangote’s polypropylene production, stating it will revitalize Nigeria’s struggling textile industry and save the country $267 million in annual import costs.
Speaking on Channels Television’s Business Incorporated, MAN Director-General Segun Ajayi-Kadir highlighted the impact of the development, noting that the textile industry, which once employed over 25,000 workers in Northern Nigeria, had suffered due to a lack of local polypropylene production.
“With the availability of locally produced polypropylene, industries such as textiles, plastics, and furniture will benefit significantly. This move eliminates reliance on imports, saving the country scarce foreign exchange,” he said.
He emphasized that this would encourage investments in the sector, reduce production costs for manufacturers, and contribute to the government’s goal of building a $1 trillion economy.
Dangote’s $2 billion petrochemical plant in Lagos is expected to produce 900,000 metric tonnes of polypropylene annually, catering to local demand and enabling Nigeria to become a net exporter of the product.
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