The Dangote Petroleum Refinery has introduced a new dollar-based pricing structure for refined petroleum products, setting the ex-depot price of Premium Motor Spirit (PMS), popularly known as petrol, at $0.779 per litre. The move signals the end of naira-based payments for refined products purchased from the refinery, a system introduced after the Federal Government’s naira-for-crude arrangement commenced on October 1, 2024.
The latest development represents a major adjustment in the refinery’s commercial operations and is expected to influence pricing trends in Nigeria’s deregulated downstream oil sector, where Dangote Refinery has become the country’s leading supplier of refined petroleum products.
Under the new pricing template, which took effect on Monday, Automotive Gas Oil (diesel) is now priced at $1.087 per litre, while Aviation Turbine Kerosene (aviation fuel) is fixed at $0.942 per litre. Coastal supplies of petrol, meanwhile, have been pegged at $1,044.62 per metric tonne.
The refinery announced the new rates in a notice circulated to petroleum marketers and customers, stating that all previously issued naira-denominated pro forma invoices and Deal Recaps for gantry and coastal transactions were no longer valid.
The notice signed by the refinery’s Group Commercial Operations stated, "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 now cost $0.779 per litre, diesel will sell for $1.087 per litre, and aviation fuel for $0.942 per litre, while coastal PMS transactions will be priced at $1,044.62 per metric tonne.
However, the refinery clarified that the transition to dollar-based transactions would not affect liquefied petroleum gas (LPG) sales.
“Also note that this transition to USD does not apply to LPG transactions,” the company stated.
Industry sources explained that the revised pricing model reflects the refinery’s latest commercial strategy aimed at aligning product sales with the currency used for acquiring a significant portion of its crude oil supplies.
A source familiar with the development said the refinery adopted the new framework due to the growing imbalance between the currency used for crude purchases and the currency in which refined products were being sold locally.
The source noted that Dangote Refinery now obtains a larger proportion of its crude supplies from the Nigerian National Petroleum Company Limited (NNPCL) through dollar-based arrangements, while many refined products continued to be sold domestically in naira.
The situation, according to the source, increased the refinery’s exposure to foreign exchange risks.
Another source explained the rationale behind the decision, saying, "The 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 shift is expected to affect petroleum marketers who rely heavily on the refinery for fuel supplies across the country. It could also influence retail fuel prices, depending on fluctuations in the foreign exchange market, crude oil prices, transportation expenses and other operating costs.
The refinery had previously adopted naira-based transactions following the Federal Government’s domestic crude supply initiative, which was designed to provide local refiners with crude oil in naira, reduce foreign exchange pressure and support fuel price stability.
However, the arrangement has faced challenges in recent months, with industry operators reporting that a significant portion of crude deliveries had shifted back to dollar-denominated transactions.
The latest move highlights the continued foreign exchange challenges facing Nigeria’s petroleum sector, despite efforts to strengthen local refining capacity and reduce reliance on imported fuel.
It has also renewed discussions over the sustainability of the naira-for-crude policy and its impact on domestic petroleum pricing.
The new dollar benchmark will now serve as the reference point for marketers purchasing products directly from Dangote Refinery. However, the final pump price consumers pay will depend on the prevailing exchange rate, transportation costs, distribution margins, regulatory charges and other market factors.
Fuel prices in Nigeria have continued to experience fluctuations due to changes in crude oil prices, exchange rates and competition among suppliers, with industry stakeholders closely watching Dangote Refinery’s pricing decisions because of its growing influence in the domestic petroleum market.
