Dangote Stops Naira Petrol Sales, Unveils Dollar Prices

Dangote Petroleum Refinery has transitioned to dollar-denominated sales of refined petroleum products, fixing the ex-depot price of Premium Motor Spirit, commonly known as petrol, at $0.779 per litre.

The new pricing structure also sets benchmark prices for diesel and aviation fuel, marking the end of naira payments for refined products following the commencement of the Federal Government’s naira-for-crude arrangement on October 1, 2024.

The development represents a significant change in the refinery’s commercial operations and could have wider implications for pricing in Nigeria’s deregulated downstream petroleum sector, where Dangote Refinery has become the country’s largest supplier of refined petroleum products.

Under the revised pricing schedule, which took effect on Monday, Automotive Gas Oil, also known as diesel, is priced at $1.087 per litre, while Aviation Turbine Kerosene will sell for $0.942 per litre. Coastal deliveries of petrol have been fixed at $1,044.62 per metric tonne.

The refinery announced the new rates in a notice issued to petroleum marketers and customers. It also stated that all previously issued naira-denominated Proforma Invoices and Deal Recaps covering gantry and coastal transactions were no longer valid.

The notice, signed by the refinery’s Group Commercial Operations, read, “Following our email on the 9th of July, 2026, regarding the transition from Naira to United States Dollars, please note that all issued Naira Coastal and Gantry PFIs/Deal Recaps are now invalid, and no payments should be made against them.

“The applicable USD prices for each product, effective today, July 13, 2026, are provided below.”

According to the new schedule, petrol purchased through the gantry will cost $0.779 per litre, diesel will sell for $1.087 per litre, and aviation fuel has been fixed at $0.942 per litre. Coastal supplies of PMS will be sold at $1,044.62 per metric tonne.

However, the refinery clarified that Liquefied Petroleum Gas transactions are excluded from the transition to dollar-denominated payments.

“Also note that this transition to USD does not apply to LPG transactions,” the refinery said.

The latest pricing arrangement is understood to reflect the refinery’s efforts to align the currency used for the sale of refined products with the currency in which a significant portion of its crude oil feedstock is purchased.

Why Dangote Refinery Switched to Dollar Sales

Sources familiar with the development said the refinery adopted the new framework following a growing imbalance between the currency used to purchase crude oil and the currency received from the sale of refined petroleum products.

According to one official, Dangote Refinery now receives a considerably larger proportion of its crude oil supplies from the Nigerian National Petroleum Company Limited under dollar-denominated arrangements, even as a substantial volume of its refined products had continued to be sold locally in naira.

The situation reportedly increased the refinery’s exposure to foreign exchange risks, particularly amid fluctuations in the value of the naira and changes in international crude oil prices.

Explaining the reason for the transition, another source said, “Dangote refinery is receiving fewer naira-denominated crude cargoes from NNPCL compared with dollar-denominated cargoes, while a larger volume of its petroleum products has been sold in naira. The resulting currency mismatch, combined with volatility in international crude oil prices and continued exchange-rate uncertainty, made it necessary to migrate product sales to dollars.”

The move is expected to have significant consequences for petroleum marketers, many of whom purchase products directly from the refinery for distribution across the country. Its effect on domestic fuel prices will likely depend on movements in the foreign exchange market and international crude oil prices.

Dangote Refinery had previously adopted naira-denominated transactions under the Federal Government’s domestic crude supply initiative. The arrangement was designed to supply local refiners with crude oil in naira, strengthen domestic refining capacity, reduce pressure on foreign exchange demand and help stabilise fuel prices.

However, the initiative has reportedly encountered implementation challenges in recent months, with industry stakeholders indicating that an increasing proportion of crude oil supplies has returned to dollar-denominated transactions.

The refinery’s latest decision highlights the continuing foreign exchange pressures affecting Nigeria’s downstream petroleum industry, despite efforts to expand local refining capacity and reduce the country’s dependence on imported petroleum products.

The development could also raise fresh concerns about the future of the Federal Government’s naira-for-crude policy and the possible consequences for domestic fuel pricing.

Going forward, the new dollar-denominated benchmark will serve as the reference price for marketers purchasing petroleum products directly from Dangote Refinery. However, the final retail pump price of petrol will still depend on several factors, including the prevailing naira-to-dollar exchange rate, logistics and transportation costs, regulatory charges, marketers’ margins and other operating expenses.

Fuel pump prices have fluctuated in recent months due to changes in crude oil prices, foreign exchange rates and competition among suppliers. Industry stakeholders are therefore expected to continue closely monitoring pricing decisions by Dangote Refinery because of its growing influence on Nigeria’s domestic petroleum market.