Key points
- Dangote Refinery has switched major refined petroleum product sales from naira to US dollars.
- Petrol is now priced at $0.779 per litre, while diesel and aviation fuel are benchmarked at $1.087 and $0.942 per litre, respectively.
- The move raises fresh concerns over the future of Nigeria’s naira-for-crude policy and consumers’ exposure to exchange-rate volatility.
Main Story
Nigeria’s push to shield domestic fuel prices from foreign exchange pressures is facing a fresh test after Dangote Petroleum Refinery switched major refined product sales from naira to US dollars.
The refinery has fixed the ex-depot price of Premium Motor Spirit (PMS), popularly known as petrol, at $0.779 per litre under a new dollar-denominated pricing template that took effect on Monday, July 13, 2026.
Automotive Gas Oil (diesel) is now priced at $1.087 per litre, while Aviation Turbine Kerosene will sell for $0.942 per litre. Coastal petrol supplies have also been benchmarked at $1,044.62 per metric tonne.
The move effectively ends naira payments for petrol, diesel and aviation fuel purchased directly from the refinery and marks a sharp reversal from the naira-based transactions introduced following the commencement of the Federal Government’s naira-for-crude initiative in October 2024.
Dangote Refinery has also cancelled previously issued naira-denominated Proforma Invoices and Deal Recaps covering gantry and coastal transactions, warning customers against making payments on them.
Liquefied Petroleum Gas transactions are, however, excluded from the dollar pricing arrangement.
The decision comes barely two weeks after the refinery reduced its petrol ex-depot price from ₦1,125 to ₦1,075 per litre and opened direct petrol sales to all qualified marketers.
Now, the refinery’s move to dollar pricing shifts a critical part of the downstream market back towards exchange-rate exposure.
The Issues
The biggest concern is what the decision means for Nigeria’s naira-for-crude policy.
The initiative was designed to allow local refiners to buy domestic crude in naira, reduce pressure on foreign exchange demand and limit the impact of dollar volatility on locally refined petroleum products.
However, industry sources say Dangote Refinery is receiving fewer naira-denominated crude cargoes while a growing proportion of its feedstock is supplied under dollar-based arrangements.
This created a currency mismatch: the refinery was increasingly buying crude in dollars while selling a large share of its products domestically in naira.
The imbalance exposed the refinery to foreign exchange risks, particularly as the naira fluctuated and international crude prices remained volatile.
For Nigerian consumers, the concern is that dollar-denominated refinery prices could make petrol more sensitive to movements in the foreign exchange market.
Even without a change in Dangote’s dollar benchmark, a weaker naira could raise marketers’ effective product acquisition costs and eventually influence pump prices.
The shift also raises questions about whether Nigeria’s domestic crude supply framework is delivering enough naira-priced feedstock to sustain the original objectives of the policy.
What’s Being Said
In a notice to petroleum marketers and customers, Dangote Refinery said all previously issued naira-based transaction documents were no longer valid.
“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,” the refinery said.
The company also clarified that LPG transactions would remain outside the new pricing framework.
“Also note that this transition to USD does not apply to LPG transactions,” it added.
Industry sources linked the decision to the widening mismatch between the currency used by the refinery to procure crude and the currency received from domestic product sales.
“Dangote refinery is receiving fewer naira-denominated crude cargoes from NNPCL compared with 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 continued exchange-rate uncertainty, made it necessary to migrate product sales to dollars,” a source familiar with the development said.
What You Should Know
The Federal Government introduced the crude and refined product sales in naira initiative in 2024 as part of efforts to support domestic refining and reduce foreign exchange pressure in the petroleum market.
Under the arrangement, local refineries, including Dangote, were expected to receive crude oil in naira and sell refined petroleum products in the local currency.
The policy was intended to break the historical link between Nigeria’s domestic fuel market and the heavy foreign exchange demand associated with petroleum imports.
Dangote Refinery has since emerged as a dominant supplier in Nigeria’s downstream petroleum market, with its pricing decisions increasingly influencing marketers and pump prices.
Recent refinery data also showed that about 78% of its crude feedstock between May and June 2026 came from NNPCL and other Nigerian producers, while 22% was sourced internationally.
However, domestic crude does not necessarily mean naira-denominated crude, leaving the refinery exposed to dollar obligations even when barrels are sourced within Nigeria.
What’s Next
Petroleum marketers will now have to adjust to the refinery’s dollar pricing template, with attention turning to how operators source foreign exchange for product purchases.
The eventual pump price of petrol will depend on the prevailing naira-dollar exchange rate, logistics costs, transportation margins and marketers’ operating expenses.
Attention will also shift to the Federal Government and NNPCL over the future implementation of the naira-for-crude arrangement.
Any sustained reduction in naira-denominated crude supplies could further weaken the policy’s ability to insulate domestic fuel prices from foreign exchange volatility.
Bottom Line
Dangote Refinery’s switch to dollar-denominated fuel sales is more than a pricing adjustment; it exposes a growing fault line in Nigeria’s naira-for-crude policy.
A programme created partly to reduce the downstream sector’s dependence on foreign exchange is now being tested by a crude supply and currency mismatch.
For motorists, the risk is clear: petrol prices may once again become more directly tied to every major swing in the naira-dollar exchange rate.
