Dangote Petroleum Refinery has fixed the ex-depot price of Premium Motor Spirit (petrol) at $0.779 per litre, unveiling a new pricing template that also raised the benchmark prices for diesel and aviation fuel following its transition to dollar-denominated transactions.
This marks an end to naira payments for the purchase of refined products, which started after the October 1, 2024, commencement of the naira-for-crude deal.
The development also marks a major shift in the refinery’s commercial operations and could reshape pricing dynamics in Nigeria’s deregulated downstream petroleum sector, where Dangote has emerged as the country’s largest supplier of refined petroleum products.
The revised prices, which took effect on Monday, place Automotive Gas Oil (diesel) at $1.087 per litre, Aviation Turbine Kerosene at $0.942 per litre, while coastal deliveries of petrol were fixed at $1,044.62 per metric tonne.
The refinery disclosed the new rates in a notice issued to petroleum marketers and customers, stating that all previously issued naira-denominated Proforma Invoices and Deal Recaps for gantry and coastal transactions had become invalid.
The notice, signed by the refinery’s Group Commercial Operations, read, “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.”
Under the new pricing schedule, petrol sold through the gantry will cost $0.779 per litre, diesel $1.087 per litre, aviation fuel $0.942 per litre, while coastal PMS supplies will sell for $1,044.62 per metric tonne.
The company, however, clarified that the new pricing arrangement does not affect Liquefied Petroleum Gas. “Also note that this transition to USD does not apply to LPG transactions,” the refinery said.
Findings by our correspondent indicate that the new dollar-denominated pricing reflects the refinery’s latest commercial pricing structure and is intended to align petroleum product sales with the currency used in procuring a significant proportion of its crude oil feedstock.
Sources familiar with the development said the refinery considered it necessary to adopt a uniform pricing framework after a growing imbalance between the currency used to procure crude oil and the currency in which refined products were being sold.
One official noted that Dangote refinery now receives a significantly larger share of its crude oil supplies from the Nigerian National Petroleum Company Limited under dollar-denominated supply arrangements, while a substantial volume of its refined products has continued to be sold domestically in naira.
The source explained that the mismatch had increased the refinery’s exposure to foreign exchange risks.
Explaining the rationale behind the move, another source added, “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.”
The decision is expected to have significant implications for petroleum marketers, many of whom source products directly from the refinery for nationwide distribution. It could also influence fuel pricing in the downstream market, depending on movements in the foreign exchange market and international crude oil prices.
The refinery had previously embraced naira-denominated transactions following the Federal Government’s domestic crude supply initiative, under which local refiners were supplied crude oil in naira to strengthen domestic refining, reduce pressure on foreign exchange demand and stabilise fuel prices. However, the arrangement has faced implementation challenges in recent months, with industry stakeholders reporting that a growing proportion of crude supplies has reverted to dollar-based transactions.
The latest shift underscores the lingering foreign exchange pressures confronting Nigeria’s downstream petroleum sector despite ongoing efforts to deepen local refining and reduce dependence on imported fuels. It also raises fresh questions about the future of the government’s naira-for-crude policy and its impact on domestic fuel pricing.
The new dollar benchmark will now serve as the reference price for marketers purchasing products directly from the refinery, although the eventual retail pump price of petrol will depend on the prevailing naira-to-dollar exchange rate, logistics costs, transportation margins, regulatory charges, and marketers’ operating expenses.
In recent months, pump prices have fluctuated in response to movements in crude oil prices, foreign exchange rates and competition among suppliers, with industry stakeholders closely monitoring pricing decisions by Dangote Refinery because of its growing influence on the domestic fuel market.
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