By Niyi Jacobs
Petrol marketers under the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) have reassured Nigerians that there is no imminent fuel scarcity, dismissing concerns linked to the Naira-for-Crude arrangement and Dangote Refinery’s suspension of Naira-based sales.
In a statement on Tuesday, PETROAN’s National Public Relations Officer, Joseph Obele, emphasized that fuel supply remains stable, with the Nigerian National Petroleum Company Limited (NNPC Ltd.), modular refineries, and independent importers ensuring continuous availability.
“We wish to reassure the public that there is no reason for panic buying. The NNPC Ltd. operates functional refineries, alongside modular refineries and importers that continue to supply the market. We urge Nigerians to remain calm and go about their normal activities,” Obele stated.
No Shortage, But Importation Still Necessary
While advocating for increased local refining to boost energy security and economic growth, PETROAN acknowledged that domestic production alone cannot meet national demand. The association, therefore, supports keeping the window for petroleum importation open to ensure a stable and competitive market.
Naira-for-Crude Program Under Review
Regarding the Naira-for-Crude initiative, PETROAN clarified that its first six-month phase had concluded and was under review by the federal government. Obele dismissed reports of the program’s termination, noting that authorities were still evaluating its feasibility and long-term sustainability.
Opposition to Dollar-Based Transactions
PETROAN’s National President, Dr. Billy Gillis-Harry, warned against conducting petroleum transactions in foreign currency, stating that such a move could worsen Nigeria’s economic challenges.
“We urge the government to ensure all transactions are conducted in Naira to protect the economy and Nigerians’ welfare,” he said.
He further called for a review of the Petroleum Industry Act (PIA) to align with current market realities, ensuring policies effectively support local production and fuel price stability.
Background
Dangote Refinery recently announced it would no longer sell petroleum products in Naira, citing an imbalance between sales proceeds and dollar-based crude oil purchases.
The first phase of the federal government’s Naira-for-Crude initiative ended and is yet to be renewed.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) warned that its members might be forced to sell in dollars following Dangote’s decision.
Despite these concerns, PETROAN insists that fuel availability remains unaffected and urges Nigerians to disregard panic-buying speculation.
