The Independent Petroleum Marketers Association of Nigeria (IPMAN) has warned that it may start selling petrol in U.S. dollars if Dangote Refinery proceeds with pricing its products in foreign currency.
This response comes amid concerns that conducting transactions in dollars could put additional pressure on the local currency, potentially driving inflation and impacting energy security.
According to the refinery’s management, this decision aims to prevent a mismatch between its revenue from sales and its crude oil purchase obligations, which are currently priced in U.S. dollars.
However, IPMAN’s national publicity secretary, Chinedu Ukadike, reacting to the situation, stated that if Dangote Refinery insists on dollar-based transactions, marketers may have no choice but to follow suit to ease their financial burden.
“This latest development, if implemented, will definitely put pressure on the Naira. It is not a very good thing for independent marketer.
“So, we want to appeal to federal government to continue to give Dangote products in Naira so that it will not raise the demand for the dollars and put pressure on the Naira. Any moment from now, the dollar will be going up.And once the dollar goes up, it will bring unnecessary inflation, excruciating inflation, which is not good for our energy security.
“If the issue of dollar crude for product is true in Dangote, that means we at IPMAN will also resolve to sell our fuel in dollars because it will really put a pressure on us,” Ukadike said.
He, therefore, urged the federal government to ensure that Dangote Refinery continues to transact in Naira to avoid economic challenges.
