Dangote Refinery Denies Dollar Sales Policy Caused Petrol Price Hike, Says No Marketer Has Paid in USD Yet

Dangote Petroleum Refinery has pushed back against suggestions that its newly introduced dollar-based sales policy is behind a wave of petrol price increases at major filling stations across Nigeria, saying it is yet to receive a single dollar payment from any marketer. The denial follows a near N50 per litre jump in Premium Motor Spirit (PMS) prices at several Dangote-linked outlets, which fuelled public speculation that the refinery's shift to dollar-denominated transactions had fed directly into higher costs at the pump.

Refinery Says Higher Prices Reflect Old Inventory, Not New Dollar Policy

A senior official at the refinery said products currently selling at elevated prices were purchased before the new framework was introduced, meaning the cost increase reflects old inventory rather than goods procured under the dollar payment arrangement, Punch reports. The refinery has maintained its official gantry price at $0.779 per litre, which translates to roughly N1,077 per litre at the current exchange rate. According to the official, the policy change was designed to align sales with the refinery's crude oil procurement obligations and support the long-term viability of the facility, not to trigger an immediate spike in pump prices.

Price Variation Across Lagos Depots

Data from Petroleumprice.ng showed notable variation in ex-depot PMS prices across Lagos, with several marketers quoting figures well above the refinery's naira-equivalent gantry price. The breakdown of prices at major depots is as follows: Pinnacle: N1,130 per litre, MRS: N1,095 per litre, African Terminal: N1,127 per litre, Sahara: N1,127 per litre. Some Dangote-linked marketers were also selling petrol at approximately N1,125 per litre, a premium of around N48 above the refinery's stated ex-depot price.

Energy Expert Warns Dollar Payments Could Push Pump Prices Higher

Despite the refinery's assurances, energy analysts have raised concerns about the medium-term implications of settling domestic fuel purchases in foreign currency. Jeremiah Olatide, Chief Executive Officer of Petroleumprice.ng, said many marketers are unfamiliar with dollar-based payment obligations for locally sourced fuel, a situation already causing delays in fresh product purchases and adding uncertainty to the downstream market. Olatide cautioned that if the policy remains in place, it could raise the cost of doing business for fuel traders and eventually filter through to higher pump prices at filling stations nationwide, including those operated by NNPC.

What This Means for the Naira and Nigerian Consumers

The shift to dollar-denominated transactions for domestic fuel sales adds fresh pressure on the naira by increasing demand for foreign exchange in the downstream sector. If the policy persists, higher operating costs for marketers are likely to translate into sustained petrol price increases at the pump, further squeezing household budgets already strained by rising diesel costs, which hit N3,277.47 per litre in May 2026 according to the National Bureau of Statistics.