BREAKING: Dangote Dumps Naira, Begins Petrol Sales in Dollars

• Dangote Petroleum Refinery has officially ended naira-denominated transactions for petrol sales, adopting a dollar-based pricing system.

Dangote Petroleum Refinery has officially ended naira-denominated transactions for the sale of Premium Motor Spirit (PMS), also known as petrol, unveiling a new dollar-based pricing structure for refined petroleum products.

Under the new pricing template, which took effect on Monday, July 13, 2026, the refinery fixed the ex-depot price of petrol at $0.779 per litre.

The revised pricing also sets Automotive Gas Oil (diesel) at $1.087 per litre, Aviation Turbine Kerosene (Jet A1) at $0.942 per litre, while coastal deliveries of petrol have been priced at $1,044.62 per metric tonne.

The announcement marks the end of naira payments for refined products, a system introduced following the Federal Government’s naira-for-crude initiative that began on October 1, 2024.

In a notice sent to petroleum marketers and customers, the refinery stated that all previously issued naira-denominated invoices and deal recaps for gantry and coastal transactions had become invalid.

“All issued Naira Coastal and Gantry PFIs/Deal Recaps are now invalid, and no payments should be made against them,” the refinery stated.

However, the company clarified that the transition to dollar transactions does not apply to Liquefied Petroleum Gas (LPG).

Industry sources said the move was driven by a growing mismatch between the currency used to purchase crude oil and the currency in which refined products were being sold.

According to sources familiar with the development, Dangote Refinery now receives a significant portion of its crude oil supplies from the Nigerian National Petroleum Company Limited (NNPCL) under dollar-denominated arrangements, while many of its refined products have continued to be sold in naira.

The imbalance, coupled with exchange rate volatility and fluctuations in global crude oil prices, reportedly increased the refinery’s exposure to foreign exchange risks.

The new pricing structure is expected to have significant implications for petroleum marketers and could influence pump prices nationwide, depending on the prevailing exchange rate, transportation costs, regulatory charges and other operating expenses.

The development also raises fresh questions about the future of the Federal Government’s naira-for-crude policy, which was introduced to strengthen local refining, reduce pressure on foreign exchange demand and stabilise domestic fuel prices.

As Nigeria’s largest supplier of refined petroleum products, pricing decisions by Dangote Refinery are expected to continue playing a major role in determining fuel prices across the country.