Independent petroleum marketers have criticised the Dangote Petroleum Refinery’s decision to price petroleum products in United States dollars, warning that the policy could intensify foreign exchange pressures and create fresh instability in Nigeria’s downstream oil sector.

The stakeholders on Tuesday acknowledged the refinery’s right as a private enterprise to determine its commercial strategy but cautioned that selling petroleum products for local consumption in dollars could have far-reaching consequences for the economy, according to The PUNCH.

The Petroleum Products Retail Outlets Owners Association of Nigeria also condemned the move, arguing that dollar-denominated fuel transactions could accelerate the country’s drift towards a dollarised economy and undermine ongoing efforts to stabilise the downstream petroleum market.

The Independent Petroleum Marketers Association of Nigeria called on President Bola Tinubu to urgently intervene by ensuring the continuation of the crude-for-naira arrangement, warning that pricing fuel in dollars could lead to greater volatility in pump prices.

The controversy followed Dangote Petroleum Refinery’s decision to quote ex-depot prices for Premium Motor Spirit, Automotive Gas Oil and aviation fuel in United States dollars for gantry and coastal transactions, a move that has sparked concerns among industry stakeholders over its potential impact on Nigeria’s foreign exchange market and downstream petroleum sector.

In a mail to marketers on Monday, it said, “Following our email on the 9th of July, 2026, regarding the transition from Naira to United States Dollars, please note that all issued Naira Coastal and Gantry PFIs/Deal Recaps are now invalid, and no payments should be made against them.”

Following the announcement, depot owners across major petroleum hubs adjusted their loading prices as marketers factored in the expected increase in replacement costs.

Data from petroleumprice.ng showed that petrol prices rose by as much as N113 per litre at some depots, while diesel prices increased by up to N150 per litre in certain locations.

The National President of PETROAN, Billy Gillis-Harry, described the decision as a move that could gradually push Nigeria towards a dollarised economy if left unchecked.

Gillis-Harry criticised the Dangote Petroleum Refinery’s decision to sell petrol in United States dollars, warning that it could deepen dollarisation, intensify pressure on the foreign exchange market and further destabilise the downstream petroleum sector.

While acknowledging the refinery’s significant contribution to Nigeria’s energy security, he maintained that the commercial decisions of a major market player should be aligned with the country’s broader economic objectives.

“This will turn Nigeria into a dollarised economy. That is the meaning, and that’s why we are saying that some of these decisions, in as much as it’s a private company that has the right to regulate the economy to do what it wants, we still have regulations, not just of price, but of values that should be able to stabilise our economy,” he said.

Gillis-Harry added, “At the end of the day, I think everything has been interrogated properly, and all the stakeholders will then take a decision. Because we cannot have one player, that is the refiner waking up today to change price; tomorrow it increases it; another day it does something else; and suddenly it wakes up and says everybody who had paid naira in his company is no longer valid.”

He argued that marketers forced to purchase petrol in dollars would have little choice but to pass the additional costs on to consumers through higher pump prices.

“It is like saying those who buy from Dangote in dollars should also sell in dollars to the masses. But we are not going to do that,” he said.

The PETROAN president said the association would continue to source petroleum products from all available suppliers while urging the Nigerian National Petroleum Company Limited to rehabilitate and fully revive the country’s refineries to foster competition in the downstream sector.

“PETROAN will continue to patronise Dangote, patronise imported products, and keep encouraging NNPC to up their game, and make sure that the refineries are working. Because if the four refineries are working, we will not be talking about this at this time.

“We will be talking about what is the competitive value that drives down prices. But that’s not where we are. We just left having a meeting to determine what it is that needs to be done, and suddenly, another shock from the same source. Should everybody run out of business?” he queried.

The PETROAN president expressed concern that marketers could now be compelled to source scarce foreign exchange from banks to purchase petroleum products.

Despite his concerns, Gillis-Harry expressed confidence that the situation would be resolved without disrupting fuel supply across the country.

“I know this will be resolved. I believe that it will be resolved. It will not lead to fuel scarcity. We cannot expect the worst for our country. We will always expect the best for our country. We had a war in the Gulf region. It affected us, but it did not in any way make us start queuing up for fuel, as it happened in some places.”

“So, we should be grateful to Dangote, but while we are grateful, we’ll continue to call on him to ensure that we have full stakeholder participation to give much more security than anything else,” he conceded.

The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, also appealed to President Bola Tinubu to intervene through the Presidential Committee on Petroleum and other relevant government agencies.

Ukadike urged the government to act swiftly, noting that petroleum product prices are closely tied to global crude oil prices and exchange rate movements, making the sector highly vulnerable to currency fluctuations.

He said, “My only response to this issue is to appeal to President Bola Tinubu that whatever the presidential committee on petroleum should do, especially the minister, should address this issue and help us cushion the ecosystem and bring stability in terms of products and pump price volatility.

“It is pertinent to note that the price of crude oil and foreign exchange determines the price at the pump. Once these factors are affected in any way, especially when they are increasing at the same time, it becomes bad news for Nigerians whose economy is domestically driven through petroleum products.”

The marketers’ spokesman argued that expanding dollar-denominated petroleum transactions at a time when Nigeria was grappling with foreign exchange pressures could further strain the country’s forex market and exacerbate existing economic challenges.

Ukadike warned that denominating petroleum transactions in dollars would increase demand for scarce foreign exchange and inevitably translate into higher pump prices for consumers.

“The sale of fuel in dollars will ultimately affect prices at the pump. Exchange rate affects the price of petroleum products because some vessels and other processes involved in bringing in the products are paid for in dollars.

“It is calculated in dollars, so if there is any pressure on the dollar now because a few marketers are pursuing dollar exchange to buy petroleum products, it means this will affect the availability of dollars and lead to an increase.

“It will definitely impact the price of petrol. There are no two ways about it. Petrol prices in Nigeria are determined by two major things — crude oil prices in the international market and the dollar exchange rate,” Ukadike stated.

Although Dangote Petroleum Refinery has yet to announce a new petrol loading price under its dollar-denominated payment system, market operators have already begun incorporating the new pricing framework into their replacement cost calculations.