Dangote Refinery Begins Selling Petrol in Dollars, Ends Naira Pricing System

Dangote Refinery petrol in dollars has become the latest development in Nigeria’s downstream petroleum sector as Dangote Petroleum Refinery officially commenced the sale of petroleum products in United States dollars, bringing an end to its naira pricing system for Premium Motor Spirit (PMS), popularly known as petrol.
The new pricing regime took effect on Monday. Under the revised structure, petrol is now sold at an ex-depot price of $0.779 per litre, while diesel is priced at $1.087 per litre. Aviation fuel will sell for $0.942 per litre, while coastal deliveries of petrol have been fixed at $1,044.62 per metric tonne.
In a notice issued to petroleum marketers and customers, the refinery announced that all previously issued naira-denominated Proforma Invoices and Deal Recaps for gantry and coastal transactions have been cancelled.
Customers were advised not to make payments using the old naira invoices, as only the newly introduced dollar-based pricing system is now valid.
The refinery explained that the transition follows an earlier announcement on its plan to switch petroleum product transactions from naira to United States dollars. However, it clarified that the new pricing structure does not affect Liquefied Petroleum Gas (LPG), which will continue to be sold under the existing payment arrangement.
The decision officially ends the naira payment system introduced following the commencement of the Federal Government’s naira-for-crude initiative on October 1, 2024.
According to the refinery, the new pricing reflects the currency used to purchase a significant portion of the crude oil processed at the facility.
Sources familiar with the development disclosed that the refinery now receives a larger share of its crude oil supplies through dollar-denominated transactions, while a substantial volume of its refined petroleum products had continued to be sold locally in naira.
The mismatch between the currencies used for crude oil purchases and refined product sales reportedly increased the refinery’s exposure to foreign exchange risks.
The sources also cited persistent fluctuations in global crude oil prices and continued volatility in Nigeria’s foreign exchange market as major factors behind the decision to adopt a dollar-based pricing framework.
The new policy is expected to affect petroleum marketers who buy products directly from the refinery for distribution across the country.