Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has expressed its opposition to the proposal for selling petroleum products in US dollars.
The association warns that this approach could place additional strain on the foreign currency reserves and exacerbate inflation in Nigeria.
On Monday, industry representatives from the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) voiced their concerns regarding the naira-for-crude oil policy, suggesting instead that crude oil should be sold in dollars.
In a statement released on Tuesday, Billy Gillis-Harry, the national president of PETROAN, highlighted the crucial need for all transactions within Nigeria to be conducted using the local currency. This, he argues, is necessary to safeguard the economy and promote stability.
“We believe that such a practice would have an adverse impact on the economy, bringing undue pressure on foreign currency and exacerbating Nigeria’s already challenging inflationary situation,” Gillis-Harry said.
“We urge the government to ensure that all transactions within the country are conducted in the local currency, the Naira, to protect the economy and the welfare of Nigerians.
“We believe that a comprehensive review of the PIA will provide opportunities to address emerging challenges, promote investment, and enhance the overall efficiency of the petroleum sector.”
Joseph Obele, PETROAN’s spokesperson, also told Nigerians that there is no justification for panic buying, as there is no shortage of petroleum products in the market.
Some media reports had attributed the panic buying to the temporary suspension of naira-based sales by the Dangote refinery.
Obele clarified that Nigeria still has multiple sources of petrol supply.
He said the sources include the Nigerian National Petroleum Company (NNPC) Limited, which operates two functional refineries, several modular refineries, and independent importers supplying the market.
“We see no reason for this panic buying and urge Nigerians to remain calm and go about their normal activities,” the statement reads.
“We wish to reassure the general public that the tension leading to panic buying is baseless.
“Federal government, ministry of Petroleum and regulatory agencies are committed to ensuring a seamless supply of petroleum products to meet the demands of Nigerians.
“PETROAN remains a strong advocate for local production of petroleum products.
“We believe that promoting local production will not only guarantee energy security but also create jobs and stimulate economic growth.
“However, we also recognise that local production alone may not be sufficient to meet the country’s demand for petroleum products.”
The spokesperson added that it supports the position that the window for the importation of petroleum products should remain open.
“This will ensure that the country has a stable and sustainable supply of petroleum products, while also promoting competition and keeping prices in check,” it said.
“We are optimistic that the Ministry of Petroleum Resources will continue to work in the best interest of Nigeria and come up with policies and solutions that will ensure the sustainable supply of petroleum products.
“We urge Nigerians to remain calm and go about their normal activities without fear of scarcity.”
According to Obele, the six-month test run for the naira-for-crude initiative has ended.
He added that the federal government is currently reviewing the policy to determine its future.
“Contrary to some reports, the policy was not terminated but rather is undergoing a review after the initial test run period,” PETROAN said.
“We understand that the Ministry is still considering the feasibility and sustainability of the Naira-for-Crude initiative.
“We urge the Ministry to continue its deliberations, taking into account the interests of all stakeholders, including petroleum products retailers, to ensure that any policy decisions align with the nation’s economic goals.”
Also, the federal government was commended by the group for its commitment to allowing market forces to determine pricing, which encourages healthy competition and prevents a monopoly of any kind.
PETROAN said the approach will ensure that the petroleum market remains competitive, innovative, and responsive to the needs of Nigerians.
