Dangote Abandons Naira Pricing, Introduces Petrol Price In US Dollars

According to industry reports, the 650,000-barrel-per-day refinery has fixed the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, at $0.779 per litre, marking a significant shift in its commercial operations.

The new pricing framework, which took effect on Monday, also adjusted the prices of other refined products, including diesel and aviation fuel, as the refinery aligns its transactions with international currency standards.

Under the new arrangement, Automotive Gas Oil (diesel) has been priced at $1.087 per litre, while aviation fuel will sell at $0.942 per litre. For coastal deliveries, petrol was pegged at $1,044.62 per metric tonne.

According to Ireporter Online, the refinery informed petroleum marketers and customers that all previously issued naira-denominated Proforma Invoices and Deal Recaps for gantry and coastal transactions had been cancelled and would no longer be valid.

The company, through its Group Commercial Operations department, stated that the transition from naira to United States dollars was effective from July 13, 2026, advising customers to adopt the new dollar-based pricing structure for all transactions.

However, the refinery clarified that the new policy does not affect Liquefied Petroleum Gas (LPG) transactions, which will continue under the existing pricing arrangement.

The development marks the end of the naira-based sales model introduced under the Federal Government’s naira-for-crude initiative, which was designed to support local refining, reduce foreign exchange pressure and promote stability in the petroleum sector.

Industry analysts noted that the decision could reshape pricing trends within Nigeria’s deregulated downstream petroleum market, where Dangote Refinery has emerged as the country’s largest supplier of refined petroleum products.

Sources familiar with the matter explained that the move was influenced by increasing foreign exchange pressures arising from differences between crude oil procurement costs and local product sales.

According to industry stakeholders, the refinery has increasingly relied on dollar-based crude supply arrangements while a significant portion of its refined products were previously sold in naira, creating currency-related challenges.

One industry source stated that the growing gap between dollar-denominated crude purchases and naira-based product sales, alongside exchange rate uncertainty and fluctuations in global crude prices, contributed to the decision to switch to dollar pricing.

The new pricing model is expected to have major implications for petroleum marketers and consumers, as the final pump price of petrol will continue to depend on factors such as the prevailing exchange rate, transportation expenses, logistics costs, operating charges and market conditions.

Experts believe Dangote Refinery’s pricing decision could influence the wider downstream petroleum sector, given its role as Nigeria’s largest domestic refiner and a major supplier to fuel marketers across the country.

The latest development has also renewed discussions over the future of the Federal Government’s naira-for-crude policy, with stakeholders monitoring its impact on local refining capacity, fuel affordability and Nigeria’s petroleum market.