Dangote Petroleum Refinery has set the ex-depot price of Premium Motor Spirit (petrol) at $0.779 per litre, introducing a new pricing template that also raises benchmark prices for diesel and aviation fuel as it moves to dollar-denominated transactions.
This shift marks the end of naira payments for refined products—a system implemented after the October 1, 2024, launch of the naira-for-crude initiative. The change represents a significant pivot in Dangote’s commercial operations and is expected to reshape pricing dynamics in Nigeria’s deregulated downstream petroleum sector, where Dangote now dominates as the country’s largest supplier of refined fuels.
Effective Monday, the revised prices are as follows: Automotive Gas Oil (diesel) at $1.087 per litre, Aviation Turbine Kerosene at $0.942 per litre, and coastal deliveries of petrol at $1,044.62 per metric tonne.
In a notice to petroleum marketers and customers, Dangote Refinery clarified that all previously issued naira-denominated Proforma Invoices and Deal Recaps for gantry and coastal transactions are now void. The company’s Group Commercial Operations stated: “Following our email on July 9, 2026, regarding the transition from naira to U.S. 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.”
Under the new pricing schedule, gantry sales of petrol are set at $0.779 per litre, diesel at $1.087 per litre, aviation fuel at $0.942 per litre, and coastal PMS supplies at $1,044.62 per metric tonne. The refinery clarified that the dollar-denominated pricing does not apply to Liquefied Petroleum Gas (LPG), which remains unaffected by the change.
Industry sources explained that the move to dollar pricing reflects the refinery’s need to align product sales with the currency used for obtaining most of its crude oil feedstock. One official noted that Dangote Refinery now sources a significant portion of its crude from the Nigerian National Petroleum Company Limited (NNPCL) under dollar-based arrangements, while much of its refined product sales remained in naira, creating a currency mismatch and exposing the company to foreign exchange risk.
“Dangote Refinery is receiving fewer naira-denominated crude cargoes from NNPCL compared to 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 persistent exchange-rate uncertainty, made it necessary to migrate product sales to dollars,” a source explained.
This decision is expected to have far-reaching implications for petroleum marketers—many of whom purchase directly from Dangote for nationwide distribution—and could further influence fuel pricing in the downstream sector, depending on shifts in the forex market and international oil prices.
Previously, Dangote Refinery embraced naira transactions as part of the Federal Government’s domestic crude supply initiative, aimed at boosting local refining and stabilizing fuel prices by reducing forex demand. However, industry stakeholders report that increasing volumes of crude supplies have reverted to dollar-based transactions in recent months, creating operational challenges for the naira-for-crude policy.
The latest change underscores persistent foreign exchange pressures in Nigeria’s downstream sector and raises new questions about the future of the government’s naira-for-crude policy and its impact on domestic fuel pricing.
The new dollar benchmarks will now serve as the reference for marketers purchasing directly from the refinery. However, the final retail pump price of petrol will still depend on the naira-to-dollar exchange rate, logistics, transportation margins, regulatory charges, and marketers’ operating expenses.
In recent months, pump prices have fluctuated in response to changes in crude oil prices, exchange rates, and competition among suppliers, with industry stakeholders closely tracking Dangote Refinery’s pricing decisions due to its growing influence on the domestic fuel market.
