Dangote Refinery switches to dollar pricing, sets petrol at $0.779 per litre
By Aboki Forex —
The Dangote Refinery has adopted a new pricing system for refined petroleum products, moving from naira-based transactions to U.S. dollars. The ex-depot price for Premium Motor Spirit (PMS), commonly known as petrol, is now set at $0.779 per litre.
All naira-denominated invoices and deal recaps are now invalid. Payments must be made in dollars. This change affects petrol, diesel, and aviation kerosene, but does not apply to Liquefied Petroleum Gas (LPG).
New pricing schedule for refined products
Under the new pricing schedule, Automotive Gas Oil (diesel) costs $1.087 per litre. Aviation Turbine Kerosene (ATK) costs $0.942 per litre. Petrol delivered via coastal deliveries costs $1,044.62 per metric tonne.
The refinery notified marketers and customers that all previously issued naira-denominated Proforma Invoices and Deal Recaps for gantry and coastal transactions were no longer legitimate. The notice, signed by the refinery’s Group Commercial Operations, read: “Following our email on the 9th of July, 2026, regarding the transition from Naira to United States Dollars, please note that all issued Naira Coastal and Gantry PFIs/Deal Recaps are now invalid, and no payments should be made against them. The applicable USD prices for each product, effective today, July 13, 2026, are provided below.”
Dangote stressed that the policy change has no effect on LPG, which will continue to be traded under the current payment arrangement.
Why the refinery moved to dollar pricing
According to industry sources, the refinery chose the dollar pricing model to address a widening disparity between the currencies used to acquire crude oil and those used to sell refined goods. While a higher portion of crude supplied by the Nigerian National Petroleum Company Limited (NNPCL) is now billed in dollars, many domestic gasoline sales were still in naira. This exposed the refinery to exchange-rate risks.
The transition terminates the refinery's usage of naira for refined product sales. That arrangement was implemented as part of the Federal Government's naira-for-crude plan in October 2024. In March last year, the Dangote Refinery discussed the idea of restricting fuel delivery to the Nigerian market owing to unresolved concerns with the naira-for-crude oil exchange arrangement. At the time, it appeared the refinery was considering selling petrol in the country, albeit in USD. The decision to sell gasoline in foreign currency was based on an imbalance in sales profits versus crude oil purchasing commitments.
What this means for the naira and consumers
The change is likely to impact Nigeria's downstream petroleum sector. Marketers who receive fuel directly from Dangote will now buy products using dollar benchmarks. However, retail fuel prices will continue to be determined by a variety of factors, including exchange rates, transportation costs, taxes, and marketer margins. The adjustment also raises new concerns about the longevity of Nigeria's naira-for-crude strategy, which was designed to boost local refining, relieve pressure on foreign exchange demand, and help stabilize domestic oil prices. For consumers and businesses, the shift to dollar pricing at the refinery level could translate into higher pump prices if the naira weakens, adding to inflationary pressures in the economy.