IPMAN Threatens to Sell Petrol in Dollars Over Dangote Refinery’s Foreign Currency Decision
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has issued a warning to start selling petrol in US dollars if Dangote Refinery proceeds with selling its products in foreign currency.
This threat follows concerns that such a move could put additional pressure on the Nigerian Naira, fueling inflation and disrupting energy security in the country.
According to a report by LEADERSHIP on Wednesday, Dangote Refinery has temporarily halted the sale of petrol in Naira until the government resumes its crude-for-naira sale arrangement. The refinery’s management stated that the decision was crucial to address the current imbalance between the revenue from petrol sales and its obligations for crude oil purchases, which are denominated in US dollars.
“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 refinery’s statement explained.
However, Chinedu Ukadike, the national publicity secretary of IPMAN, voiced strong opposition to the decision, warning that if Dangote Refinery begins selling petrol in dollars, it will put additional financial pressure on marketers. He expressed concern that such a move would only exacerbate the strain on the Naira.
“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 sell Dangote products in Naira to avoid raising the demand for dollars and further weakening the Naira. If the dollar continues to rise, it will lead to unnecessary inflation, which will be detrimental to our energy security,” Ukadike said.
He also emphasized that should Dangote Refinery’s shift to dollar-denominated transactions become a reality, IPMAN would have no choice but to follow suit and sell fuel in dollars as well. This, he added, would lead to greater economic challenges for the country.
Ukadike urged the federal government to step in and ensure that Dangote Refinery continues its transactions in Naira to prevent further economic instability.
