Key points
- Dangote Refinery has switched from naira to U.S. dollar pricing for refined petroleum products.
- Petrol is now priced at $0.779 per litre, while diesel and aviation fuel are also quoted in dollars.
- The refinery said all previously issued naira-denominated invoices and deal recaps are no longer valid.
- The move is aimed at reducing foreign exchange risks linked to crude oil purchases.
Main story
Dangote Refinery has introduced a U.S. dollar-based pricing system for refined petroleum products, ending its practice of selling fuel in naira as it seeks to reduce its exposure to foreign exchange risks.
Under the new pricing schedule, the refinery fixed the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, at $0.779 per litre. Automotive Gas Oil (diesel) will sell for $1.087 per litre, while Aviation Turbine Kerosene (ATK) is priced at $0.942 per litre. Petrol supplied through coastal deliveries is priced at $1,044.62 per metric tonne.
The refinery notified marketers that all previously issued naira-denominated Proforma Invoices and Deal Recaps for gantry and coastal transactions had become invalid and should no longer be used for payments.
It, however, clarified that the new pricing policy does not affect Liquefied Petroleum Gas (LPG), which will continue to be sold under the existing payment arrangement.
The shift marks a departure from the naira-based sales model introduced under the Federal Government’s naira-for-crude initiative launched in October 2024.
Industry sources said the refinery adopted the new pricing structure because crude oil purchases are increasingly denominated in U.S. dollars, while a significant portion of domestic fuel sales had remained in naira, exposing the company to exchange-rate losses.
The change is expected to affect fuel marketers that source products directly from the refinery, although retail pump prices will still depend on factors such as exchange rates, transportation costs, taxes and distribution margins.
The development has also renewed questions about the long-term sustainability of the Federal Government’s naira-for-crude policy, which was introduced to support local refining, reduce pressure on foreign exchange demand and stabilise domestic fuel prices.
The issues
The move highlights the growing influence of foreign exchange dynamics on Nigeria’s downstream petroleum sector and raises fresh concerns about the future of the naira-for-crude arrangement.
What’s being said
“All issued Naira Coastal and Gantry PFIs/Deal Recaps are now invalid, and no payments should be made against them.” — Dangote Refinery
What’s next
Marketers and fuel distributors are expected to adjust to the new dollar-based pricing regime while industry stakeholders monitor its impact on fuel supply, foreign exchange demand and retail pump prices.
Bottom line
Dangote Refinery’s transition to dollar-denominated fuel sales reflects the increasing pressure of foreign exchange realities on Nigeria’s refining sector and could reshape pricing dynamics across the downstream oil market.
