Dangote Petroleum Refinery has ended naira payments for its refined products, switching to dollar-denominated salesin other to reshape pricing across Nigeria’s downstream petroleum sector.
The refinery fixed the ex-depot price of petrol at $0.779 per litre, alongside new dollar benchmarks for diesel and aviation fuel, a reversal of the naira-for-crude arrangement that began in October 2024.
Under the revised template, which took effect Monday , the gantry sales of Premium Motor Spirit are priced at $0.779 per litre, Automotive Gas Oil (diesel) at $1.087 per litre, and Aviation Turbine Kerosene at $0.942 per litre. Coastal PMS deliveries were fixed 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 are now invalid, following an earlier notice sent July 9 announcing the transition. Liquefied Petroleum Gas transactions remain unaffected and will continue in their existing payment structure.
Industry sources said the move was heightened by a growing currency mismatch: the refinery is receiving a larger share of its crude oil from the Nigerian National Petroleum Company Limited under dollar-denominated arrangements, while a substantial volume of its refined products has continued to be sold locally in naira.
That imbalance, compounded by crude price volatility and exchange-rate uncertainty, had increased the refinery’s foreign exchange exposure.
One source told Daily Trust that while Dangote requires over 15 crude cargoes monthly, NNPCL has struggled to supply even three under the naira-for-crude deal, pushing the refinery to source more crude from dollar-based suppliers.
Analysts warn the shift could accelerate fuel price increases and raise dollar demand, potentially weakening the naira further.
Because retail pump prices will now hinge on the naira-to-dollar exchange rate alongside logistics costs and marketers’ margins, fuel pricing is expected to become more volatile and responsive to currency swings.
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