Market News
Oil marketers rule out sale of petrol in dollars - THE SUN
By Adewale Sanyaolu
Petroleum Retail Outlet Owners Association of Nigeria (PETROAN) has ruled out the possibility of sale of Premium Motor Spirits(PMS), also known as petrol in dollars.
National President of PETROAN, Mr. Billis Gillis-Harry, told Daily Sun in an interview that PETROAN is not part of those calling for such a business decision.
He added that the Nigerian economy is not run in dollars but in naira.
“PETROAN is not part of we are concerned, we can never be part of such conversations,” he said.
He explained that the Dangote refinery being located in an export processing zone gives him some level of flexibility in pricing and currency.
“As retail outlet owners, we have never sat anywhere and discussed selling petrol in dollars,’ he said.
Following the decision of the Dangote Petroleum Refinery to end the sale of petroleum products in naira and sell in the dollar as a result of likely break down in talks over the first phase of the naira-for-crude policy for Dangote and other local refineries by the Federal Government, the Independent Petroleum Marketers Association of Nigeria(IPMAN) had threatened to retail petrol in dollars
National Publicity Secretary of IPMAN, Chinedu Ukadike, said many marketers buy from the Dangote refinery, and they may have to start selling in dollars if the federal government and the Dangote refinery as well as other local refineries do not reach an agreement on the naira-for-crude arrangement.
Ukadike said he was shocked by the announcement by the Dangote refinery and expressed concerns about its impact on pump prices and foreign exchange.
Dangote refinery had last week, announced that it has temporarily halted the sale of petroleum products in naira in order to avoid a mismatch between its sales proceeds and crude oil purchase obligations, which are currently denominated in U.S. dollars. “This is a malicious falsehood. Our systems are robust and we have had no fraud issues. We remain committed to serving the Nigerian market efficiently and sustainably,” it stated.
However, the refinery assured that as soon as it receives an allocation of n aira-denominated crude cargoes from NNPC, it will promptly resume petroleum products sale in naira.
