Dangote Refinery Adopts Dollar Pricing for Petrol, Ends Naira Transactions
Dangote Petroleum Refinery has introduced a new pricing system for its refined products, replacing naira transactions with a dollar-based structure.
Under the revised arrangement, petrol is now priced at $0.779 per litre at the depot, while diesel and aviation fuel are set at $1.087 and $0.942 per litre respectively. The company also established a dollar benchmark for coastal fuel supplies. The updated pricing took effect immediately, with earlier naira-denominated invoices withdrawn.
The change represents a major adjustment in the refinery’s operations and signals a shift in how petroleum products are traded within Nigeria’s deregulated downstream sector. Industry sources indicate that the move was influenced by the need to align product sales with the currency used to purchase crude oil, much of which is now obtained in dollars.
Analysts say the previous system, which involved selling products in naira while sourcing crude in foreign currency, exposed the refinery to exchange rate risks. The adoption of dollar pricing is therefore expected to provide greater financial stability amid currency fluctuations and global oil price volatility.
The development is likely to impact fuel marketers, who may now require access to foreign exchange to procure products. This could, in turn, affect retail fuel prices depending on exchange rates and other distribution costs.
While the new structure applies to major refined products, the refinery noted that liquefied petroleum gas transactions remain unaffected.
The transition also raises concerns about the sustainability of the naira-for-crude initiative introduced by the Federal Government to support local refining and reduce pressure on foreign exchange. Recent trends suggest challenges in maintaining that framework, as more crude supply agreements revert to dollar terms.
Given its dominant role in domestic fuel supply, the refinery’s pricing decisions are expected to influence market trends and shape the broader outlook for Nigeria’s petroleum sector.
