By Seun Ibiyemi
Dangote Petroleum Refinery has fixed the ex-depot price of Premium Motor Spirit (petrol) at $0.779 per litre, unveiling a new dollar-denominated pricing structure for refined petroleum products and effectively ending naira payments for fuel purchases.
The revised pricing template, which took effect on Monday, also increased benchmark prices for Automotive Gas Oil (diesel) and aviation fuel, marking a major shift in the refinery’s commercial operations and potentially reshaping pricing dynamics in Nigeria’s deregulated downstream petroleum sector.
Under the new pricing schedule, petrol sold through the gantry will cost $0.779 per litre, diesel will sell for $1.087 per litre, while aviation fuel has been pegged at $0.942 per litre. Coastal deliveries of petrol have also been fixed at $1,044.62 per metric tonne.
The development signals an end to naira-denominated transactions introduced under the Federal Government’s naira-for-crude arrangement, which commenced on October 1, 2024, to support local refining and reduce pressure on foreign exchange demand.
In a notice issued to petroleum marketers and customers, Dangote Refinery stated that all previously issued naira-denominated Proforma Invoices and deal recaps for gantry and coastal transactions had become invalid.
The notice, signed by the refinery’s Group Commercial Operations department, read: “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 company, however, clarified that the transition does not affect Liquefied Petroleum Gas transactions, which will continue under the existing arrangement.
Industry sources said the move reflects Dangote Refinery’s efforts to align the currency used for the sale of refined products with that used to procure a significant share of its crude oil feedstock.
According to sources familiar with the development, the refinery has increasingly received crude supplies from the Nigerian National Petroleum Company Limited under dollar-denominated agreements, even as a substantial proportion of its refined products continued to be sold locally in naira.
One source explained that the disparity between the currencies used for crude purchases and product sales had exposed the refinery to foreign exchange risks.
“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 source said.
“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 decision is expected to have far-reaching implications for petroleum marketers, many of whom rely on products from the refinery for nationwide distribution.
Analysts say the move could also influence retail fuel prices, depending on developments in the foreign exchange market and global crude oil prices.
The refinery had embraced naira transactions under the Federal Government’s domestic crude supply initiative, which was designed to strengthen local refining capacity, curb dependence on imported petroleum products and stabilise pump prices.
However, the policy has faced implementation challenges in recent months, with industry stakeholders reporting that an increasing proportion of crude supplies has reverted to dollar-based transactions.
The latest development underscores the foreign exchange pressures facing Nigeria’s downstream petroleum sector despite ongoing efforts to deepen domestic refining and reduce reliance on fuel imports.
READ ALSO:Dangote Refinery deserves protection against import liberalisation – CPPE
Analysts say the shift raises fresh questions about the future of the naira-for-crude policy and its long-term impact on fuel pricing and exchange-rate stability.
Under the new framework, the dollar-denominated ex-depot prices will serve as the benchmark for marketers purchasing products directly from the refinery.
However, the final retail price of petrol will continue to depend on prevailing exchange rates, logistics costs, transportation margins, regulatory charges and marketers’ operating expenses.
In recent months, fuel prices have fluctuated in response to movements in crude oil prices, foreign exchange rates and competition among suppliers, with industry players closely watching pricing decisions by Dangote Refinery because of its growing dominance in Nigeria’s petroleum market.
