Petroleum marketers may require about $1.84 billion every month to purchase petrol, diesel and aviation fuel from Dangote Petroleum Refinery following the company’s decision to price refined petroleum products in dollars, a development analysts warned could increase pressure on Nigeria’s foreign exchange market, test liquidity position and expose consumers to more frequent fuel price fluctuations.

With the depot price of premium motor spirit (PMS) already increasing by over N100 per litre, the decision may also leave consumers with significant strain.

It is expected to stress-test the liquidity position of the foreign exchange (FX) and how fast it can respond to short-notice demand by largely fragmented marketers.But with the marketers’ sourced dollar going directly to the local refinery in the new pseudo-import arrangement, the market is likely not going to witness significant FX leakage or loss through the new deal.