Dangote Petroleum Refinery has officially ended naira payments for the purchase of Premium Motor Spirit (petrol), introducing a dollar-based pricing system for refined petroleum products in a move that could reshape Nigeria’s downstream oil market.
Under the new pricing template, the refinery fixed the ex-depot price of petrol at $0.779 per litre, while diesel will sell at $1.087 per litre and aviation fuel at $0.942 per litre. Coastal deliveries of petrol have also been priced at $1,044.62 per metric tonne. The new rates took effect on July 13, 2026.
The refinery notified marketers and customers that all previously issued naira-denominated invoices and transaction documents for gantry and coastal supplies are no longer valid. It, however, clarified that the transition does not apply to Liquefied Petroleum Gas (LPG), which will continue to be sold under the existing payment arrangement.
The move marks the end of the naira payment system introduced under the Federal Government’s naira-for-crude initiative, which began in October 2024 to support local refining, reduce pressure on foreign exchange demand and stabilise domestic fuel prices.
Industry sources attributed the change to a growing mismatch between the currency used to procure crude oil and the currency in which refined products were being sold. According to the sources, a larger share of the refinery’s crude oil supply is now purchased in dollars, while much of its petroleum products had continued to be sold in naira, exposing the company to foreign exchange risks.
The sources added that continued volatility in global crude oil prices and exchange rates made it necessary for the refinery to align product sales with the currency used to acquire most of its crude feedstock.
The development is expected to have significant implications for petroleum marketers that source products directly from the refinery, with analysts noting that the eventual retail pump price of petrol will depend on the prevailing exchange rate, logistics costs, transportation expenses, regulatory charges and marketers’ margins.
The shift also raises fresh questions about the future of the government’s naira-for-crude policy, which was designed to strengthen domestic refining and reduce Nigeria’s dependence on imported petroleum products.
As the country’s largest supplier of refined petroleum products, Dangote Refinery’s pricing decisions are expected to continue playing a major role in determining fuel prices across Nigeria’s deregulated downstream petroleum sector.
