PETROAN urges FG to revive state refineries as Dangote switches to dollar sales

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called on the Federal Government to urgently revive the country’s state-owned refineries. This follows the decision by Dangote Refinery to suspend the sale of petroleum products in naira and switch to dollar-denominated transactions.

PETROAN warns against single supplier dominance

PETROAN National President, Dr. Billy Gillis-Harry, said the operation of the Port Harcourt, Warri and Kaduna refineries would provide a vital price-check mechanism in the downstream petroleum sector. He argued that reviving these refineries would prevent market dominance by a single supplier.

Gillis-Harry made the remarks in a statement reacting to Dangote Refinery’s move to begin selling its products in dollars. The association fears that without competing refineries, the market could become vulnerable to price manipulation and supply disruptions.

Dangote Refinery shifts to dollar transactions

Dangote Refinery, which began operations in 2023, had initially sold petroleum products in naira to ease pressure on the local currency. The switch to dollar-denominated sales is expected to impact pump prices and the broader foreign exchange market.

Industry analysts say the move could increase demand for dollars in the Nigerian economy, potentially putting additional pressure on the naira. The development comes as the Central Bank of Nigeria continues to manage foreign exchange liquidity.

What this means for the naira and consumers

For Nigerian consumers, the shift to dollar-denominated sales at Dangote Refinery may lead to higher petrol prices if the naira continues to weaken. The revival of state refineries, as PETROAN suggests, could offer a buffer by providing alternative supply and pricing competition. However, the timeline for bringing the Port Harcourt, Warri and Kaduna refineries back to full operation remains uncertain.