Dangote Petroleum Refinery has ended naira-denominated sales of its refined petroleum products, shifting to a new dollar-based pricing system for petrol, diesel, and aviation fuel.
The move marks a significant change from the naira-for-crude arrangement that began in October 2024, shortly after the refinery commenced commercial operations.
In a notice sent to marketers, the refinery said that with the transition to dollar sales, which took effect on Monday, July 13, 2026, all naira-denominated Proforma Invoices and Deal Recaps issued previously for gantry and coastal transactions had become invalid.
“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,” part of the notice issued to marketers read.
Under the new pricing template, the refinery has set the following ex-depot prices: petrol (PMS) $0.779 per litre, diesel (AGO) $1.087 per litre, and aviation fuel (ATK) $0.942 per litre. It further disclosed that the coastal supply of petrol will be at $1,044.62 per metric tonne.
The refinery clarified that this transition does not affect Liquefied Petroleum Gas (LPG) transactions, which it said will continue under the existing payment arrangement
Why the Switch Happened
Insiders said the shift to dollar pricing was largely due to a currency mismatch in the refinery’s operations.
The refinery is reportedly being increasingly supplied with crude oil priced and paid for in dollars, while it still sells refined products in naira. While the refinery needs over 15 cargoes of crude monthly, the Nigerian National Petroleum Company Limited (NNPCL) struggles to supply even three cargoes under the naira-for-crude arrangement. This mismatch left the refinery paying for its primary input in dollars while selling its output in naira.
This is said to have created a significant foreign exchange exposure and financial pressure for the company, especially with a depreciating naira. The refinery management deemed it necessary to align its sales currency with its procurement currency.
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Implications for Nigerians and Marketers
This policy change is expected to have ripple effects across Nigeria’s downstream petroleum sector.
For petroleum marketers who buy directly from Dangote, the new system requires them to secure dollars to purchase products, adding a layer of cost and logistical friction. This, according to analysts, could lead to higher pump prices depending on the exchange rate.
For Nigerian consumers, it is believed that while they will not pay for petroleum products at filling stations in dollars, the change will likely influence the cost structure for marketers. If the naira weakens, marketers will need more naira to buy the same volume of fuel, potentially leading to higher retail prices for consumers.
Pressure on the Naira
There are concerns that increase in domestic demand for dollars to purchase fuel could put additional strain on Nigeria’s foreign exchange market and the naira.
This development raises questions about the long-term viability of the Federal Government’s naira-for-crude policy, which was designed to reduce foreign exchange demand and stabilize fuel prices.
Victor Ezeja is a Nigerian journalist skilled in producing insightful news analyses, feature stories, and interviews that simplify complex issues and drive informed public discourse. His work combines rigorous research, balanced reporting, and compelling storytelling to highlight developments shaping industries and society. Victor, who holds a Master's Degree in Mass Communication, specializes in energy, aviation, business, and economic reporting. He can be reached via @VICTOREZEJA on X