The Petroleum Products Retail Outlets Owners Association of Nigeria has confirmed that Dangote Refinery has not yet started selling petroleum products in dollars, despite earlier concerns.
PETROAN President, Billy Gillis-Harry, said that despite talks of a possible suspension, the association had not been formally notified of any changes in fuel sales.
“So as far as I know, up until yesterday, our members who bought products are still buying in Nigeria and Naira. And I don’t think that Dangote is looking for how to create any panic in the system,” he said.
The Petroleum Products Retail Outlets Owners Association of Nigeria on Wednesday confirmed that Dangote Refinery has not yet started selling petroleum products in dollars, despite earlier concerns.
PETROAN President, Billy Gillis-Harry, stated on Arise Television that members of the association are still purchasing products in naira.
Gillis-Harry said that despite talks of a possible suspension, the association had not been formally notified of any changes in fuel sales.
He also confirmed that depot prices remained unchanged as of Wednesday.
“So as far as I know, up until yesterday, our members who bought products are still buying in Nigeria and Naira. And I don’t think that Dangote is looking for how to create any panic in the system.
“But he’s also crying out loud for how the business of the refinery should be stable, which any businessman should do. But as far as buying in US dollars as of today, I cannot confirm that that has happened,” Gillis-Harry added.
On March 19, Dangote announced a temporary suspension of petroleum product sales in Naira, citing challenges in buying crude oil in dollars while selling in the local currency.
In the statement, Dangote refinery stated that selling in Naira while purchasing crude in dollars would create a mismatch in sales proceeds.
Despite several meetings to resolve the issue, no agreement has been reached.
Gillis-Harry however emphasized that PETROAN has been advocating for Nigerian crude oil to be sold in Naira, insisting that the policy should be maintained.
“And if for some reason that decision is going to be reviewed, my opinion is that it should be done in a full stakeholder value chain, so that way we do not just think that the government woke up on just these two policies.
“There is a stakeholder forum that’s already set up for the industry. It’s called the Petroleum Industry Stakeholder Forum that is being headed by the Minister of Petroleum (Oil). And we believe that this decision should be presented to the stakeholders so we can all make input as to the pros and cons of any of these policies,” the PETROAN president stated.
PETROAN also stated that product prices will continue to fluctuate based on factors like landing costs, adding that it cannot guarantee either an increase or a decrease in prices.
“The price of petroleum products, especially PMS, is dependent on different parameters, mostly the cost for production, cost for delivery, and the total cost of landing. So if there is a shift in any one of these, it will obviously impact the price.
“If the cost goes down, then we’ll have lower prices. If the cost goes up, then we’ll have higher prices. So it’s not fixed, and we do hope that it will keep this up-and-down movement until sometime we’ll be able to deliver it on a particular average,” he added.
Gillis-Harry reaffirmed PETROAN’s earlier stance, urging Nigerians not to panic-buy, as the conditions for product scarcity have not yet emerged.