Petrol marketers under the aegis of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) have dismissed fears of scarcity purportedly induced by the controversy surrounding the Naira-for-crude arrangement.
In a statement on Tuesday by PETROAN’s National Public Relations Officer, Joseph Obele, the association assured Nigerians that there is no cause for panic buying of petroleum products.
PETROAN dismissed speculations that the temporary suspension of Naira sales by Dangote Refinery could affect fuel supply in the country.
It assured that fuel supply remains stable, with the Nigerian National Petroleum Company Limited (NNPC Ltd.), modular refineries, and importers ensuring continuous availability.
“We wish to reassure the public that this is not a justification for panic buying. The NNPC Ltd. has two functional refineries, and there are other modular refineries, as well as importers, that are also supplying petroleum products to the market.
“Therefore, we see no reason for the threat of panic buying. We urge Nigerians to remain calm and go about their normal activities, as there is no shortage of petroleum products,” the statement read.
Obele added that the tension leading to panic buying is unfounded, as the government and regulatory agencies remain committed to maintaining a seamless supply of petroleum products nationwide.
“We believe that promoting local production will not only guarantee energy security but also create jobs and stimulate economic growth.
“However, the petroleum marketing body recognized that local production alone may not be sufficient to meet the country’s demand for petroleum products, and thus supports the position that the window for 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.
“We urge Nigerians to remain calm and go about their normal activities without fear of scarcity,” he said.
Naira-for-Crude arrangement under review
On the Naira-for-Crude initiative, the statement reiterated that the first phase of the program, a six-month test run, had ended and is currently under review by the federal government.
Contrary to reports of its termination, Obele noted that authorities are assessing its feasibility and sustainability.
“We understand that the ministry is still considering the feasibility and sustainability of the Naira-for-Crude initiative,” he said.
PETROAN urged the government to take into account the interests of petroleum product retailers and other stakeholders before making final policy decisions.
PETROAN opposes Dollar-based transactions
According to the statement, PETROAN’s National President, Dr. Billy Gillis-Harry, expressed the association’s opposition to selling petroleum products in foreign currency within Nigeria, warning that such a move could worsen the country’s economic challenges.
“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,” Gillis-Harry said.
He also advocated for a review of the Petroleum Industry Act (PIA) to align with current realities in the petroleum sector, ensuring policies effectively support local production and market stability.
What you should know
- Nairametrics reported that the Dangote refinery has decided to end the sales of petroleum products in Naira, citing an imbalance between its sales proceeds and Dollar-dominated crude oil purchases.
- The decision comes in the wake of the end of the first phase of the Naira-for-crude arrangement, which is yet to be renewed.
- The Independent Petroleum Marketers Association of Nigeria (IPMAN) warned that its members may resort to retailing in dollars as a result of the Dangote refinery’s decision.
