Dangote Refinery Resumes Petrol Sales in Dollars, Drops Naira Payments

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Dangote Petroleum Refinery has switched payment for the sale of Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), and Aviation Turbine Kerosene (ATK) to the U.S. dollar. The new policy took effect immediately and applies to both gantry and coastal product sales.

What Has Changed

The refinery now requires all buyers to pay in dollars for petrol, diesel, and aviation fuel. This covers sales at the gantry and for coastal deliveries. The decision marks a shift from earlier arrangements where naira payments were accepted for some products.

Immediate Impact on Buyers

Marketers and off-takers must now source foreign exchange to purchase these products. The policy applies to all categories of buyers. The refinery did not announce any grace period for the transition.

What This Means for the Naira and Consumers

The shift to dollar-denominated sales could increase pressure on the naira as demand for foreign exchange rises among fuel buyers. It may also lead to higher pump prices if marketers pass on the cost of dollar sourcing to consumers. Nigerian businesses that rely on diesel and aviation fuel face similar cost pressures.

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