PIA PERMITS DANGOTE’S DOLLAR FUEL SALES – REGULATOR

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has clarified that the Petroleum Industry Act (PIA) permits the sale of petroleum products in foreign currency, justifying Dangote Refinery’s decision to price petrol in US dollars.

The Authority’s Chief Executive, Engr. Farouk Ahmed, made the clarification on Friday while responding to the widespread criticism that followed the refinery’s announcement. He said the PIA allows flexibility in pricing and currency of transaction to ensure the sustainability of local refining operations.

“The PIA provides the legal framework for market-determined pricing. Dangote Refinery, like other players in the downstream sector, has the right to sell in the currency that supports its operations, especially given the challenges with foreign exchange availability,” Ahmed stated.

The regulator assured the public that it is closely monitoring the situation to ensure that the policy does not lead to undue hardship for consumers. It also urged marketers to maintain transparency in their pricing and avoid arbitrary increases.

The announcement has continued to generate debate, with many Nigerians expressing concern over the further dollarisation of the economy. Economic experts have warned that the move could put additional pressure on the naira and increase the cost of living.

Dangote Refinery officials have maintained that the decision was necessary to sustain operations and guarantee steady fuel supply. The company said it will continue to work with the government to find a lasting solution to the foreign exchange challenges facing the industry.

The NMDPRA has promised to engage with all stakeholders to ensure that the policy is implemented in a manner that balances the interests of the refinery, marketers, and the general public. The authority said it will not hesitate to intervene if the situation leads to market distortion or consumer exploitation.