By Sabiu Abdullahi
Dangote Petroleum Refinery has ended naira-denominated sales of Premium Motor Spirit (PMS), also known as petrol, and introduced a dollar-based pricing system for its refined petroleum products.
The new pricing structure, which took effect on Monday, fixes the ex-depot price of petrol at $0.779 per litre. Diesel will now sell at $1.087 per litre, while Aviation Turbine Kerosene is priced at $0.942 per litre. Coastal deliveries of petrol have also been fixed at $1,044.62 per metric tonne.
The refinery announced the changes in a notice sent to marketers and customers. It also declared that all naira-denominated Proforma Invoices and Deal Recaps issued earlier for gantry and coastal transactions were no longer valid.
The notice stated: “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.”
The refinery, however, clarified that the new arrangement does not apply to Liquefied Petroleum Gas (LPG). It said, “Also note that this transition to USD does not apply to LPG transactions.”
The latest development marks the end of the naira payment system introduced after the Federal Government’s naira-for-crude initiative began on October 1, 2024. That policy allowed local refiners to purchase crude oil in naira to support domestic refining and reduce pressure on foreign exchange.
Industry sources said the refinery adopted the new framework because of the growing gap between the currency used to purchase crude oil and the currency used to sell refined products. According to them, a larger share of crude supplies from the Nigerian National Petroleum Company Limited (NNPCL) is now obtained through dollar-denominated arrangements.
One source said the change became necessary because the refinery faced increased exposure to foreign exchange risks.
Another source explained, “Dangote refinery is receiving fewer naira-denominated crude cargoes from NNPCL compared with dollar-denominated cargoes, while a larger volume of its petroleum products has been sold in naira. The resulting currency mismatch, combined with volatility in international crude oil prices and continued exchange-rate uncertainty, made it necessary to migrate product sales to dollars.”
The decision is expected to affect petroleum marketers that buy products directly from the refinery. Analysts also believe it could influence retail fuel prices, depending on exchange rates, logistics costs, transportation expenses and other market factors.
