Dangote Petroleum Refinery has officially commenced the sale of Premium Motor Spirit (PMS), popularly known as petrol, in United States dollars, marking a significant shift in its pricing policy after months of selling refined petroleum products in naira.
The refinery announced that the new dollar-denominated pricing regime took effect on Monday, July 13, 2026, with petrol now selling at an ex-depot price of $0.779 per litre.
It also revised the prices of other petroleum products, fixing Automotive Gas Oil (diesel) at $1.087 per litre, Aviation Turbine Kerosene (ATK) at $0.942 per litre, while coastal deliveries of petrol were pegged at $1,044.62 per metric tonne.
The new pricing structure was communicated to petroleum marketers and customers through an official notice issued by the refinery’s Group Commercial Operations.
According to the notice, all previously issued naira-denominated Proforma Invoices (PFIs) and Deal Recaps for both gantry and coastal transactions have become invalid following the transition to dollar-based transactions.
The refinery directed customers not to make payments against the earlier naira invoices, stating that all transactions from July 13, 2026, would be processed under the newly introduced dollar pricing framework.
However, the company clarified that the new arrangement does not apply to Liquefied Petroleum Gas (LPG), commonly known as cooking gas, which will continue to be transacted under the existing pricing structure.
Industry sources familiar with the development said the refinery adopted the new pricing policy to address a growing imbalance between the currency used to procure crude oil and the currency in which refined petroleum products were being sold.
According to the sources, Dangote Refinery now receives a substantially larger proportion of its crude oil supplies from the Nigerian National Petroleum Company Limited (NNPCL) under dollar-denominated supply arrangements, while a significant share of its refined products had continued to be sold domestically in naira.
The mismatch, coupled with exchange rate volatility and rising international crude oil prices, reportedly increased the refinery’s exposure to foreign exchange risks, making it increasingly difficult to sustain naira-denominated sales.
The latest development effectively marks the refinery’s departure from the Federal Government’s naira-for-crude initiative, a policy introduced to enable local refiners purchase crude oil in naira, reduce pressure on foreign exchange demand, strengthen domestic refining capacity and stabilise fuel prices.
Industry analysts believe the transition to dollar pricing could significantly affect petroleum marketers, many of whom depend on the refinery for product supply.
They warned that the new pricing regime may influence retail fuel prices across the country, depending on prevailing exchange rates and movements in the global oil market.
The decision has also renewed debate over the future of the Federal Government’s domestic crude supply policy, with stakeholders expressing concern over its long-term sustainability and the potential implications for fuel affordability, foreign exchange management and Nigeria’s downstream petroleum sector.
Attention is now focused on the Federal Government and industry regulators as stakeholders await possible policy responses to the refinery’s decision, which is expected to reshape pricing dynamics in Nigeria’s petroleum market.
