Independent petroleum marketers and energy experts have opposed the Dangote Petroleum Refinery's decision to price petroleum products in United States dollars, warning that the policy could intensify foreign exchange pressure, raise fuel costs and destabilise Nigeria's downstream oil sector.

The marketers, under the aegis of the Independent Petroleum Marketers Association of Nigeria and the Petroleum Products Retail Outlets Owners Association of Nigeria, argued that selling fuel in dollars would force marketers to source scarce foreign exchange, with the additional cost ultimately transferred to consumers through higher pump prices.

Industry stakeholders also expressed concern that the development could undermine the Federal Government's naira-for-crude policy, which was introduced to reduce pressure on the foreign exchange market by allowing local refiners to purchase crude oil in naira.

They warned that a return to dollar-denominated transactions could reverse the gains of the initiative and worsen exchange-rate volatility.

The refinery had earlier announced a new pricing template fixing the ex-depot price of Premium Motor Spirit (petrol) at $0.779 per litre, while diesel and aviation fuel were also denominated in dollars.

According to the company, the decision was necessitated by a mismatch between its dollar-denominated crude purchases and naira-denominated sales, as well as volatility in crude oil prices and exchange rates.

Some marketers said they were already considering alternative sources of supply, including imports, if the new pricing regime becomes unsustainable, insisting that petroleum products sold within Nigeria should be priced in the local currency.