Marketers to begin paying in dollars as refinery unveils new pricing template for petrol, diesel and aviation fuel, raising fresh questions over the future of the naira-for-crude policy…..
Dangote Petroleum Refinery has officially ended the sale of refined petroleum products in naira, introducing a new dollar-denominated pricing structure that fixes the ex-depot price of Premium Motor Spirit (PMS), popularly known as petrol, at $0.779 per litre.
The new pricing regime, which took effect on Monday, July 13, 2026, also pegs the ex-depot price of Automotive Gas Oil (diesel) at $1.087 per litre and Aviation Turbine Kerosene (ATK) at $0.942 per litre, while petrol supplied through coastal deliveries will sell at $1,044.62 per metric tonne.
The move marks a major shift in the refinery’s commercial operations and effectively brings an end to the naira-based payment system introduced after the Federal Government’s naira-for-crude initiative began on October 1, 2024.
In a notice issued to petroleum marketers and customers, Dangote Refinery announced that all previously issued naira-denominated Proforma Invoices (PFIs) and Deal Recaps for both gantry and coastal transactions had been cancelled.
“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 refinery stated.
It added that the new dollar prices became effective immediately, while clarifying that the change does not apply to Liquefied Petroleum Gas (LPG) transactions.
Industry sources said the decision was driven by a growing mismatch between the currency used to purchase crude oil and the currency in which refined products were being sold.
According to officials familiar with the development, the refinery now receives a larger share of its crude oil supplies from the Nigerian National Petroleum Company Limited (NNPCL) under dollar-denominated arrangements, even as a significant volume of refined products has continued to be sold locally in naira.
The imbalance, they explained, has increased the refinery’s exposure to foreign exchange risks, particularly amid exchange-rate volatility and fluctuating international crude oil prices.
One source said the shift to dollar pricing was intended to create a more consistent commercial framework.
“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 source said.
The latest development is expected to have far-reaching implications for petroleum marketers, many of whom rely on Dangote Refinery as their primary source of supply for nationwide distribution.
It could also influence retail fuel prices across the country, as marketers will now factor prevailing exchange rates, transportation costs, regulatory charges and operating expenses into the final pump price paid by consumers.
The refinery had previously embraced naira-denominated transactions under the Federal Government’s domestic crude supply initiative, which was introduced to support local refining, reduce pressure on foreign exchange demand and help stabilise fuel prices.
However, industry stakeholders have recently reported implementation challenges, with an increasing share of crude supplies reverting to dollar-based transactions.
The transition back to dollar pricing highlights the persistent foreign exchange pressures facing Nigeria’s downstream petroleum sector despite ongoing efforts to strengthen local refining capacity and reduce dependence on imported fuel.
It also raises fresh questions about the long-term sustainability of the government’s naira-for-crude policy and its ability to shield Nigerians from exchange-rate-driven increases in fuel prices.
Under the new pricing framework, the dollar benchmark will serve as the reference price for marketers purchasing products directly from the refinery, while the eventual retail pump price of petrol will continue to depend on exchange rates, logistics costs, distribution margins and other market forces.
With Dangote Refinery now supplying a significant share of Nigeria’s refined petroleum products, its pricing decisions are expected to remain a key driver of competition and fuel price movements in the country’s deregulated downstream market.
