Dangote refinery shifts to dollar pricing for petrol, diesel
Dangote Petroleum Refinery has ended naira-denominated pricing for petrol, fixing its ex-depot price at $0.779 per litre under a new dollar-based framework.
Dangote Petroleum Refinery has ended naira-denominated pricing for petrol, fixing its ex-depot price at $0.779 per litre under a new dollar-based pricing framework for refined petroleum products.
The development was disclosed in a notice issued by the refinery to petroleum marketers and customers, announcing the transition from naira to United States dollar transactions for the sale of petrol, diesel and aviation fuel. At the prevailing official exchange rate of ₦1,380.50 to the US dollar, the new benchmark translates to approximately ₦1,075.61 per litre. However, unlike the previous fixed naira pricing, the ex-depot price in naira will now fluctuate in line with movements in the foreign exchange market.
According to the notice signed by the refinery’s Group Commercial Operations, all previously issued naira-denominated Proforma Invoices (PFIs) and Deal Recaps for gantry and coastal transactions have become invalid. 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.”
Under the new pricing schedule, petrol sold through the gantry will cost $0.779 per litre, diesel will cost $1.087 per litre, and Jet A1 will cost $0.942 per litre. The refinery also fixed the price of coastal petrol deliveries at $1,044.62 per metric tonne. It, however, clarified that the transition does not apply to Liquefied Petroleum Gas (LPG), noting that LPG transactions will continue under the existing arrangement.
The transition means that petroleum marketers purchasing products directly from the refinery will now transact in US dollars instead of naira. At the current official exchange rate of ₦1,380.50/$, the new ex-depot petrol price of $0.779 per litre is equivalent to about ₦1,075.61 per litre. However, because the benchmark is now denominated in dollars, the naira equivalent will no longer be fixed and will instead rise or fall depending on movements in the exchange rate.
The Federal Government introduced the naira for crude initiative on October 1, 2024, allowing local refiners to purchase crude oil in naira as part of efforts to strengthen domestic refining, reduce pressure on foreign exchange demand and support more stable fuel prices. The shift to dollar pricing represents a significant reversal of that policy.
This mirrors the 2024 shift to naira pricing, which was intended to reduce pressure on foreign exchange. The mechanism then was different, but the result was the same: Nigerian consumers are now exposed to exchange rate volatility.
The winners: Dangote Refinery, which has reduced its exchange rate risk; and the naira, which faces less pressure from fuel imports. The losers: Nigerian consumers, who will now pay more for petrol when the naira weakens; and petroleum marketers, who must now source dollars to buy products.
Bottom Line: Dangote has shifted to dollar pricing for petrol. The naira price will now rise and fall with the exchange rate. That is not a price cut. That is a currency bet. Nigerian consumers will pay the price if the bet goes wrong.