Dangote Petroleum Refinery has ended its naira-based pricing for Premium Motor Spirit (PMS), also known as petrol, and introduced a new ex-depot price of $0.779 per litre, marking the start of dollar-denominated sales of refined petroleum products.
The new pricing, which took effect on Monday, also includes revised prices for Automotive Gas Oil (diesel) and aviation fuel, signalling a major change in the refinery’s commercial operations.
The move is expected to influence pricing across Nigeria’s deregulated downstream petroleum sector, where the 650,000-barrels-per-day refinery remains the country’s largest supplier of refined petroleum products.
New Dollar Prices
According to a notice sent to petroleum marketers and customers, petrol supplied through the gantry will now sell at $0.779 per litre.
The refinery fixed the price of diesel at $1.087 per litre, while aviation fuel will sell for $0.942 per litre.
For coastal deliveries, PMS has been priced at $1,044.62 per metric tonne.
The refinery also announced that all previously issued naira-denominated Proforma Invoices (PFIs) and Deal Recaps for gantry and coastal transactions are no longer valid.
The notice, signed by the Group Commercial Operations department, stated:
“Following our email of July 9, 2026, regarding the transition from naira to United States dollars (USD), 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.”
The refinery, however, clarified that the new dollar pricing does not apply to Liquefied Petroleum Gas (LPG).
“Also note that this transition to USD does not apply to LPG transactions,” the refinery stated.
The development brings an end to the refinery’s naira-based sales system introduced under the Federal Government’s naira-for-crude policy, which began on October 1, 2024.
The policy allowed local refiners to buy crude oil in naira to boost local refining, reduce demand for foreign exchange and help stabilise fuel prices.
However, industry stakeholders have recently reported challenges with the policy, as more crude oil supplies have gradually returned to dollar-based transactions.
Reason for the Change
According to reports, the refinery adopted the new pricing structure to match the currency used to purchase a significant portion of its crude oil.
Sources familiar with the development said the refinery had become increasingly exposed to foreign exchange risks because it was buying more crude oil in dollars while selling many of its refined products locally in naira.
One source said the Nigerian National Petroleum Company Limited (NNPCL) now supplies a larger share of crude oil to the refinery through dollar-denominated transactions.
Another source explained:
“Dangote Refinery is receiving fewer naira-denominated crude cargoes from NNPCL than 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.”
Possible Impact on Fuel Market
Industry experts believe the decision will have a significant impact on petroleum marketers who depend on Dangote Refinery for fuel supplies across the country.
The refinery’s new dollar pricing is also expected to influence fuel prices in the downstream market, depending on exchange rates and global crude oil prices.
Although marketers will now buy products in dollars, the final pump price of petrol will still depend on factors such as the naira-to-dollar exchange rate, transportation and logistics costs, marketers’ operating expenses and other regulatory charges.
In recent months, petrol prices have continued to fluctuate due to changes in crude oil prices, exchange rates and increased competition among fuel suppliers.
As Nigeria’s largest local refiner, Dangote Refinery’s pricing decisions remain a key benchmark for both marketers and consumers.
The latest move has also renewed concerns about the future of the Federal Government’s naira-for-crude initiative, which was introduced to strengthen local refining and reduce dependence on imported petroleum products.
