Oil marketers under the aegis of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) have rejected the decision by the Dangote Petroleum Refinery to sell refined petroleum products in dollars.
The association’s President, Billy Gillis-Harry, urged the Federal Government not to allow the Lagos-based plant to sell in dollars to Nigerian marketers, stating that such a practice would have an adverse impact on the economy.
Meanwhile, the Dangote refinery has intensified the export of fuel to foreign nations, exporting about two million barrels of aviation fuel to the United States.
The Manufacturers Association of Nigeria (MAN) has also declared that the production of polypropylene by the Dangote refinery will revive Nigeria’s struggling textile industry and save the country $267m in import costs.
The Director-General of MAN, Segun Ajayi-Kadir, stated that the local production of polypropylene will ensure that Nigeria becomes a net exporter, generating foreign exchange to strengthen the economy.
The Dangote refinery’s export of aviation fuel to the US is expected to challenge domestic producers’ economics in the largest fuel-consuming nation.
The development comes as the refinery ramps up production to about 85% of its 650,000 barrels per day capacity, allowing it to sell more fuel to international markets.
The Federal Government has reportedly suspended the naira-for-crude deal, which may constrain the refinery’s production.
PETROAN has also raised concerns over the country’s inability to meet the growing demand for petroleum products despite the operationalization of three local refineries in Nigeria.
The association noted that the local production of a combined capacity of about 835,000 barrels per day cannot adequately cater to the country’s daily petroleum demand.
PETROAN argued that allowing the importation of petroleum products would help maintain a stable and sustainable supply in the country, while also fostering healthy competition and keeping prices under control.
