Key points
- Dangote Petroleum Refinery has resumed domestic petrol sales in naira, ending its week-long dollar pricing regime.
- The refinery increased its ex-depot (gantry) price from N1,075 to N1,215 per litre, a 13.02% increase.
- The switch follows Federal Government intervention and ongoing discussions over the naira-for-crude arrangement.
- Marketers expect the return to naira transactions to improve product availability and ease distribution bottlenecks.
- However, the higher ex-depot price could translate into higher retail pump prices nationwide.
Main Story
Dangote Petroleum Refinery has resumed the sale of Premium Motor Spirit (PMS), commonly known as petrol, in naira, ending its brief shift to dollar-denominated transactions while increasing its ex-depot price by N140 per litre.
The development comes barely a week after Africa’s largest refinery suspended petrol loading in naira and switched to dollar pricing, a move that disrupted product supply, tightened depot inventories and triggered a sharp increase in fuel prices across the downstream petroleum market.
The refinery confirmed the resumption of naira transactions in a notice issued by its commercial department to marketers on Wednesday, with the revised pricing taking immediate effect.
Under the new pricing template, the gantry price of petrol increased from N1,075 per litre to N1,215 per litre, representing a 13.02% increase. The coastal loading price also rose from N1.44 million to N1.60 million per metric tonne.
According to the notice, all outstanding gantry volumes that had not been loaded before the announcement would be repriced at the new rate.
The return to naira pricing was also confirmed by industry platform Petroleumprice.ng, whose Chief Executive Officer, Jeremiah Olatide, said marketers had been notified that gantry operations had resumed under the revised pricing structure.
The refinery had suspended both gantry and coastal loading on July 15, introducing a dollar-based pricing regime for refined petroleum products after citing difficulties in accessing crude oil under the Federal Government’s naira-for-crude policy.
The decision forced marketers to source products from private depots, where ex-depot prices climbed from about N1,075 per litre to approximately N1,275 per litre, representing an increase of about 18.6%.
Independent marketers also suspended purchases from the refinery, citing limited access to foreign exchange required to settle transactions in dollars.
Driving the Numbers
The latest price adjustment reflects a significant increase in wholesale petrol costs despite the return to local currency transactions.
Gantry price increased from N1,075 to N1,215 per litre, up by N140 or 13.02%.
Coastal loading price rose from N1,441,575 to N1,602,495 per metric tonne.
During the temporary dollar pricing regime, private depot prices increased to approximately N1,275 per litre from about N1,075 per litre.
Based on Nigeria’s estimated daily petrol consumption of 50 million litres, marketers were projected to require approximately $40 million daily, or more than $14 billion annually, if purchases had continued in dollars.
Despite the latest increase, Dangote’s new ex-depot price of N1,215 per litre remains below the prevailing N1,275 per litre quoted by many fuel importers.
The Issues
The refinery’s brief migration to dollar pricing reignited concerns over Nigeria’s foreign exchange exposure in the downstream petroleum sector.
Industry operators warned that requiring marketers to purchase petrol in dollars would significantly increase demand for foreign exchange, place additional pressure on the naira and ultimately raise retail fuel prices.
Dangote Refinery explained that the temporary policy was necessitated by challenges in accessing sufficient crude oil through the Federal Government’s naira-for-crude initiative, forcing it to source additional crude from the international market using dollars.
Although the return to naira transactions is expected to ease supply disruptions, the higher ex-depot price may still translate into increased pump prices unless offset by stronger competition or declining international crude oil prices.
What’s Being Said
The refinery said all pending gantry volumes would be repriced under the revised template with immediate effect.
It stated:
“Please be advised that all unloaded gantry volumes will be subject to repricing at the new price, which is effective 22nd July 2026. Kindly proceed with placing your order.”
The Chief Executive Officer of Petroleumprice.ng, Jeremiah Olatide, also confirmed the development, stating that the refinery had resumed pricing petrol in naira.
A senior regulatory official had earlier explained that the refinery’s temporary dollar pricing reflected rising crude procurement costs rather than a violation of the Petroleum Industry Act.
According to the official, the refinery had absorbed increasing costs for some time before deciding to pass part of the burden to off-takers.
What’s Next
Discussions between the Federal Government and Dangote Petroleum Refinery over the future of the naira-for-crude arrangement are expected to continue.
Industry stakeholders anticipate that the return to naira transactions will restore normal product evacuation and improve fuel distribution nationwide.
However, analysts expect marketers to review retail pump prices in response to the higher wholesale cost, particularly as international crude oil prices remain elevated amid renewed geopolitical tensions in the Middle East.
Bottom Line
Dangote Refinery’s return to naira-denominated petrol sales eases immediate concerns over foreign exchange demand and product availability. However, the simultaneous 13% increase in its ex-depot price underscores the persistent cost pressures facing Nigeria’s downstream petroleum market and raises the prospect of higher pump prices for consumers.
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