The Dangote Refinery has introduced a new pricing system for refined petroleum products, setting the ex-depot price of Premium Motor Spirit (PMS), also known as petrol, at $0.779 per litre as it shifts from naira-based transactions to U.S. dollars.
The move ends the refinery’s use of the naira for refined product sales, a system introduced under the Federal Government’s naira-for-crude policy in October 2024.
Under the new pricing structure, Automotive Gas Oil (diesel) will sell for $1.087 per litre, while Aviation Turbine Kerosene (ATK) will cost $0.942 per litre. Petrol supplied through coastal deliveries will be priced at $1,044.62 per metric tonne.
The refinery also informed marketers and customers that all previously issued naira-denominated Proforma Invoices and Deal Recaps for gantry and coastal transactions are no longer valid.
The applicable USD prices for each product, effective today, July 13, 2026, are provided below.”
Dangote also confirmed that the policy change does not affect Liquefied Petroleum Gas (LPG), which will continue to be sold under the existing payment arrangement.
Industry sources said the refinery adopted the dollar pricing model to address the growing mismatch between the currency used to buy crude oil and the one used to sell refined products.
They explained that while a larger share of crude supplied by the Nigerian National Petroleum Company Limited (NNPCL) is now invoiced in U.S. dollars, many domestic fuel sales have continued in naira, leaving the refinery exposed to exchange rate fluctuations.
The change is expected to affect Nigeria’s downstream petroleum sector, as marketers buying fuel directly from Dangote will now purchase products using dollar-based pricing.
However, several factors, including exchange rates, transportation costs, taxes, and marketer margins, will continue to determine retail fuel prices.
The decision has also raised fresh questions about the future of Nigeria’s naira-for-crude policy, which was introduced to support local refining, reduce pressure on foreign exchange demand, and help stabilise domestic fuel prices.
In March last year, the Dangote Refinery said it was considering suspending fuel supply to the Nigerian market because of unresolved issues surrounding the naira-for-crude exchange arrangement.
source: africa.businessinsider.com
African Energy Council