Dangote Refinery adopts dollar pricing for petrol, ends naira-denominated sales
Dangote Petroleum Refinery has ended naira-denominated pricing for Premium Motor Spirit (PMS), commonly known as petrol, introducing a dollar-based pricing framework for the sale of its refined petroleum products.
Under the new pricing regime, the refinery fixed its ex-depot price for petrol at $0.779 per litre, while Automotive Gas Oil (diesel) will sell for $1.087 per litre and Aviation Turbine Kerosene (Jet A1) for $0.942 per litre.
The refinery disclosed the development in a notice to petroleum marketers and customers, stating that the new pricing took effect on July 13, 2026.
At the prevailing official exchange rate of ₦1,380.50/$, the new ex-depot petrol price translates to about ₦1,075.61 per litre. However, unlike the previous fixed naira pricing, the naira equivalent will now fluctuate in line with movements in the foreign exchange market.
The refinery said all previously issued naira-denominated Proforma Invoices (PFIs) and Deal Recaps for gantry and coastal transactions had become invalid.
“Following our email on July 9, 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 notice stated.
It added that petrol supplied through coastal deliveries has been priced at $1,044.62 per metric tonne, while clarifying that the new pricing framework does not apply to Liquefied Petroleum Gas (LPG), which will continue under the existing arrangement.
The transition means petroleum marketers purchasing products directly from the refinery will now make payments in U.S. dollars instead of naira.
Although the benchmark price currently translates to about ₦1,075.61 per litre, the actual naira price will vary with changes in the exchange rate, introducing exchange rate risk into domestic fuel procurement.
The development comes less than two weeks after the refinery reduced its ex-depot petrol price by ₦50 to ₦1,075 per litre on July 2, marking its fourth price reduction within one month.
Industry analysts say the shift to dollar pricing could increase volatility in domestic fuel prices, as marketers’ landing costs will now be directly influenced by fluctuations in the foreign exchange market.
The eventual retail pump price will continue to depend on distribution costs, transportation expenses, dealer margins, taxes and other operational charges.
The Federal Government introduced the crude-for-naira initiative in October 2024 to enable local refiners to purchase crude oil in naira, to support domestic refining, reduce pressure on foreign exchange demand and stabilise fuel prices.
Despite the arrangement, Dangote Refinery has consistently maintained that it purchases Nigerian crude at prevailing international market prices.
The refinery’s Chief Executive Officer, David Bird, had explained earlier this year that the crude-for-naira policy does not imply discounted crude supply, noting that international crude prices, freight costs, insurance and financing expenses continue to determine the refinery’s operating costs.
The latest pricing decision is expected to be closely watched by marketers and consumers alike, given its potential implications for fuel pricing, foreign exchange demand and inflation in the months ahead
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