•Say prices will continue to fluctuate
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) yesterday said that despite the threat to begin sale of petroleum products in dollars, the Dangote refinery had yet to commence transactions in foreign currencies.
President of PETROAN, Billy Gillis-Harry, who spoke on Arise Television, noted that his members were still buying products in Naira, the local currency of Nigeria.
Despite the announcement of possible suspension, Gillis-Harry said that PETROAN had not been formally informed that any changes had been made to the sale of products, nor had the prices of fuel risen at the depots as of yesterday.
“So as far as I know, up until yesterday, our members who bought products are still buying in Nigeria and Naira. And I don’t think that Dangote is looking for how to create any panic in the system.
“But he’s also crying out loud for how the business of the refinery should be stable, which any businessman should do. But as far as buying in US dollars as of today, I cannot confirm that that has happened,” Gillis-Harry added.
Dangote had on March 19 announced the temporary suspension of the sale of petroleum products in Naira, implying that the company cannot continue to dispense in the local currency while purchasing crude oil in dollars.
In a statement, the facility located in Lagos owned by Africa’s richest man, Aliko Dangote, stated that if it continues to sell in Naira, it will experience a mismatch in sales proceeds and crude oil purchases. Since then, although there have been several meetings to sort out the issues, no agreement has been reached.
But Gillis-Harry stated that PETROAN has been at the forefront of the advocacy for Nigerian crude oil to be sold in Naira, stressing that the organisation believes that the policy should continue.
“And if for some reason that decision is going to be reviewed, my opinion is that it should be done in a full stakeholder value chain, so that way we do not just think that the government woke up on just these two policies.
“There is a stakeholder forum that’s already set up for the industry. It’s called the Petroleum Industry Stakeholder Forum that is being headed by the Minister of Petroleum (Oil). And we believe that this decision should be presented to the stakeholders so we can all make input as to the pros and cons of any of these policies,” the PETROAN president stated.
The organisation also stated that prices of products will continue to fluctuate, dictated by several factors, including landing cost of products, explaining that it cannot give a commitment on either increase or decrease in prices.
“The price of petroleum products, especially PMS, is dependent on different parameters, mostly the cost for production, cost for delivery, and the total cost of landing. So if there is a shift in any one of these, it will obviously impact the price.
“If the cost goes down, then we’ll have lower prices. If the cost goes up, then we’ll have higher prices. So it’s not fixed, and we do hope that it will keep this up-and-down movement until sometime we’ll be able to deliver it on a particular average,” he added.
Gillis-Harry reiterated an earlier statement by the organisation that Nigerians should not embark on panic buying of products, noting that the circumstances that will determine whether there will be product scarcity or not are not there yet.
“We have petroleum products to our knowledge. Most of our retail outlets are wet. And the quantity of products that are there is not what we can say will finish in one day. So there will be no need to engage in panic buying.
“But as far as the cost of one litre of PMS is concerned, it will still be determined by the factors that will determine how much is produced and how much it lands in our retail outlets,” he stressed.
However, he noted that fluctuation in prices had continued to affect the businesses of its members.
“It’s depleting our income, it’s depleting our purchasing power and the capital to invest. And that by itself could be one of the reasons why those who are importing increased their import, especially if their prices can compete very favourably and give lower prices to retail outlet owners and marketers,” Gillis-Harry argued.
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