The Dangote Refinery has implemented a new pricing system for refined petroleum products, setting the ex-depot price of Premium Motor Spirit (PMS), often known as petrol, at $0.779 per litre as it transitions from naira-based transactions to U.S. dollars.
Africa’s largest oil refinery switches to the dollar for its new pricing system
- Dangote Refinery has shifted from naira-based to U.S. dollar pricing for refined petroleum products.
- The ex-depot price for petrol is now set at $0.779 per litre, with diesel at $1.087 and aviation kerosene at $0.942 per litre.
- All naira-denominated invoices and deal recaps are now invalid, and payments must be made in dollars.
- This move aims to mitigate exchange-rate risks due to crude oil being acquired in dollars while many local sales were still in naira.
The transition terminates the refinery’s usage of naira for refined product sales, which was implemented as part of the Federal Government’s naira-for-crude plan in October 2024.
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Under the new pricing schedule, Automotive Gas Oil (diesel) will cost $1.087 per litre, while A will cost $0.942 per litre. Petrol delivered
The refinery notified marketers and customers that all previously issued naira-denominated Proforma Invoices and Deal Recaps for gantry and coastal transactions were no longer legitimate.
The notice, signed by the refinery’s Group Commercial Operations, as seen in the Punch, read, “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.
The applicable USD prices for each product, effective today, July 13, 2026, are provided below.”
Dangote further stressed that the policy change has no effect on Liquefied Petroleum Gas (LPG), which would continue to be traded under the current payment arrangement.
According to industrywidening disparity between the currencies used to acquire crude oil and those used to sell refined goods
They highlighted that, while a higher portion of crude supplied by the Nigerian National Petroleum Company Limited (NNPCL) is now billed in dollars, many domestic gasoline sales were still in naira, exposing the refinery to exchange-rate risks.
The change is likely to have an impact on Nigeria’s downstream petroleum sector, as marketers that receive fuel directly from Dangote would now buy items using dollar benchmarks.
However, retail fuel prices will continue to be determined by a variety of factors, including exchange rates, transportation costs, taxes, and marketer margins.
The adjustment also raises new concerns about the longevity of Nigeria’s naira-for-crude strategy, which was designed to boost local refining, relieve pressure on foreign exchange demand, and assist in stabilizing domestic oil prices.
In March last year, the Dangote Refinery discussed the idea of restricting fuel delivery to the Nigerian market owing to unresolved concerns with the Naira-for-Crude oil exchange arrangement.
At the time, it appeared that the refinery was considering continuing to sell petrol in the West African country, albeit in USD.
The refinery’s choice to sell gasoline in foreign currency was based on an imbalance in sales profits versus crude oil purchasing commitments.
