Dangote dumps naira, prices petrol in dollars

Dangote Petroleum Refinery has ended the sale of refined petroleum products in naira, introducing a new pricing structure that fixes the ex-depot price of Premium Motor Spirit (PMS), also known as petrol, at $0.779 per litre.
The new pricing regime, which took effect on Monday, also sets the ex-depot price of Automotive Gas Oil (diesel) at $1.087 per litre and Aviation Turbine Kerosene at $0.942 per litre. Petrol supplied through coastal deliveries will now sell at $1,044.62 per metric tonne.
The development marks the refinery’s return to dollar-based transactions after operating under the Federal Government’s naira-for-crude arrangement introduced in October 2024.
In a notice sent to petroleum marketers and customers, the refinery announced the cancellation of all previously issued naira-denominated Proforma Invoices (PFIs) and Deal Recaps for both gantry and coastal transactions.
The notice stated: “Following our email of July 9, 2026, regarding the transition from naira to United States dollars, all issued naira coastal and gantry PFIs/Deal Recaps are now invalid, and no payments should be made against them.”
However, the refinery clarified that the new payment arrangement does not affect Liquefied Petroleum Gas (LPG), which will continue to be traded under the existing framework.
Industry sources attributed the decision to the widening mismatch between the currency used to purchase crude oil and the currency in which refined products were being sold.
According to the sources, Dangote Refinery now receives a larger share of its crude oil supplies from the Nigerian National Petroleum Company Limited (NNPCL) under dollar-denominated arrangements, while many of its refined products had continued to be sold locally in naira.
They noted that the imbalance increased the refinery’s exposure to foreign exchange risks, particularly amid exchange rate volatility and fluctuating global crude oil prices.
The switch to dollar pricing is expected to have significant implications for petroleum marketers, who depend heavily on Dangote Refinery for product supply. It could also influence retail fuel prices, depending on exchange rates, logistics costs, transportation margins, regulatory charges and marketers’ operating expenses.
The development has also raised fresh concerns over the future of the Federal Government’s naira-for-crude policy, which was introduced to strengthen domestic refining, reduce demand for foreign exchange and stabilise fuel prices but has faced implementation challenges as more crude supply transactions reverted to dollar payments.
With Dangote Refinery now serving as Nigeria’s largest supplier of refined petroleum products, the new dollar-denominated pricing benchmark is expected to play a major role in determining downstream fuel prices across the country.