The Independent Petroleum Marketers Association of Nigeria (IPMAN) is set to sell petrol in US dollars if Dangote Refinery begins selling its products in foreign currency.
The move was in response to concerns that using dollars for transactions could lead to increased pressure on the local currency, potentially causing inflation and affecting energy security.
LEADERSHIP reports on Wednesday that Dangote Refinery has temporarily suspended it petrol sales in Naira until government resumes crude-for-naira-sale arrangements.
It said the decision was necessary to avoid a mismatch between its sales proceeds and crude oil purchase obligations, which are currently denominated in US dollars, the management noted.
“To date, our sales of petroleum products in Naira have exceeded the value of Naira-denominated crude we have received. As a result, we must temporarily adjust our sales currency to align with our crude procurement currency,” the statement added.
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But, IPMAN’s national publicity secretary, Chinedu Ukadike, who reacted to the development, said that selling fuel in dollars would be a necessary measure to mitigate the financial strain on marketers if Dangote Refinery adopts dollar-denominated transactions.
“This latest development, if implemented, will definitely put pressure on the Naira. It is not a very good thing for independent marketers.
“So, we want to appeal to the 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 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.
