By Kelechi Onwujuba
Dangote Petroleum Refinery has introduced a dollar-based pricing system for its refined petroleum products, setting the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, at $0.779 per litre.
The new pricing structure, which took effect on July 13, 2026, also fixes Automotive Gas Oil (diesel) at $1.087 per litre and Aviation Turbine Kerosene (ATK) at $0.942 per litre, while coastal deliveries of petrol are now priced at $1,044.62 per metric tonne.
The development marks a significant shift in the refinery's commercial operations, ending the acceptance of naira payments for refined petroleum products—a practice introduced following the Federal Government's naira-for-crude initiative that commenced on October 1, 2024.
In a notice sent to petroleum marketers and customers, Dangote Refinery announced that all previously issued naira-denominated Proforma Invoices (PFIs) and Deal Recaps for gantry and coastal transactions had been cancelled.
According to the refinery, customers should no longer make payments based on the earlier naira invoices, as all transactions will now be processed under the new dollar-denominated pricing template.
The notice, signed by the refinery's Group Commercial Operations, stated that the revised prices became effective immediately from July 13, 2026.
While petrol, diesel and aviation fuel have transitioned to dollar pricing, the refinery clarified that the change does not apply to Liquefied Petroleum Gas (LPG), which will continue to be sold under its existing payment arrangement.
Industry sources attributed the decision to the increasing mismatch between the currency used to purchase crude oil and that used to sell refined petroleum products. According to the sources, the refinery now procures a larger share of its crude feedstock under dollar-denominated agreements, particularly from the Nigerian National Petroleum Company Limited (NNPC Ltd.), while a substantial portion of its domestic fuel sales had remained in naira.
The imbalance, coupled with persistent exchange rate volatility and fluctuations in global crude oil prices, reportedly increased the refinery's foreign exchange exposure, making a transition to dollar-based sales commercially necessary.
Market analysts say the new pricing framework could significantly influence Nigeria's deregulated downstream petroleum sector, where Dangote Refinery has become the country's largest supplier of refined petroleum products.
The shift is also expected to affect petroleum marketers that rely on supplies from the refinery for nationwide distribution. Although the refinery has established new dollar benchmark prices, the eventual retail pump price of petrol will still depend on factors such as the prevailing exchange rate, international crude oil prices, logistics costs, transportation expenses, regulatory charges and marketers' operating margins.
The latest development also raises fresh concerns about the future of the Federal Government's naira-for-crude policy, which was introduced to strengthen domestic refining, reduce pressure on foreign exchange demand and stabilise fuel prices. In recent months, however, industry stakeholders have reported that an increasing proportion of crude oil supplies to local refiners has reverted to dollar-based transactions, reflecting the continued foreign exchange challenges facing Nigeria's petroleum industry.
