Nigerians may soon buy fuel in dollars as Dangote refinery suspends Naira sales - Marketers warn

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has warned that Nigerians could eventually be forced to pay for petrol, diesel and other refined petroleum products in United States dollars if the Federal Government fails to urgently revive the Naira-for-crude arrangement with Dangote Refinery.

PETROAN National President, Billy Gillis-Harry, raised the concern during a weekend interview, urging the government to swiftly conclude ongoing discussions with the refinery to prevent additional pressure on consumers and the downstream petroleum sector.

Dangote switches to dollar transactions

The warning follows Dangote Refinery's decision to begin selling refined petroleum products in US dollars, effectively ending the Naira-for-crude arrangement that previously allowed marketers to purchase fuel in the local currency.

Although reports suggest the Federal Government has opened discussions with the refinery over the issue, no official position had been announced at the time of the interview.

Gillis-Harry stressed that restoring the agreement should be treated as a national priority. "Nigerians may start buying petrol in US dollars if the Federal Government does not intervene in the Naira-for-crude deal with Dangote Refinery. We hope the downstream oil sector will not be dollarised to that extent," he said.

Fuel prices already on the rise

The development comes amid fresh increases in fuel prices across depots and retail outlets.

Petrol is currently selling for between ₦1,155 and ₦1,220 per litre in Abuja and neighbouring areas, while diesel prices range from ₦1,700 to ₦1,800 per litre, reflecting growing pressure in the downstream market.

Under Dangote Refinery's revised pricing structure:

Premium Motor Spirit (Petrol): $0.779 per litre

Automotive Gas Oil (Diesel): $1.087 per litre

Aviation Turbine Kerosene (ATK): $0.985 per litre

Fears over full dollarisation

PETROAN warned that allowing petroleum products to be traded entirely in foreign currency could expose the domestic market to exchange-rate shocks and global oil price fluctuations.

According to Gillis-Harry, retaining a mechanism that enables local transactions in naira remains one of the most effective ways to cushion Nigerians from volatile international energy markets.

The refinery's decision has sparked renewed debate among stakeholders in the oil and gas industry, with analysts cautioning that continued dollar pricing could translate into higher pump prices if the naira depreciates further against the US dollar.

For households and businesses, such a development would likely increase transportation and production costs, further squeezing consumer spending and adding to inflationary pressures already affecting the economy.