Dangote Petroleum Refinery has pegged the ex-depot price of Premium Motor Spirit (PMS), better known as petrol or fuel, at $0.779 per litre, officially commencing dollar-denominated sales of refined petroleum products and ending the naira pricing regime introduced under the Federal Government’s naira-for-crude policy.
Naijaonpoint reports that the new pricing template, which took effect on Monday, also reviewed benchmark prices for Automotive Gas Oil (diesel) and aviation fuel, signalling a major shift in the refinery’s commercial operations.
The development is expected to reshape pricing dynamics in Nigeria’s deregulated downstream petroleum sector, where the 650,000-barrels-per-day refinery has become the country’s largest supplier of refined petroleum products.
According to a notice issued to petroleum marketers and customers, petrol supplied through the gantry will now sell at $0.779 per litre.
The refinery fixed the price of diesel at $1.087 per litre, while aviation fuel will sell for $0.942 per litre.
For coastal deliveries, PMS has been priced at $1,044.62 per metric tonne.
The refinery stated that all previously issued naira-denominated Proforma Invoices and Deal Recaps for gantry and coastal transactions had become invalid.
The notice, signed by the Group Commercial Operations department, read, “Following our email of July 9, 2026, regarding the transition from naira to United States dollars (USD), 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.”
However, the company clarified that the new arrangement does not apply to Liquefied Petroleum Gas.
“Also note that this transition to USD does not apply to LPG transactions,” the refinery stated.
Naijaonpoint reports that the move effectively ends the refinery’s naira-based sales system introduced under the Federal Government’s domestic crude supply initiative, which commenced on October 1, 2024.
The policy allowed local refiners to purchase crude oil in naira with the objective of strengthening domestic refining capacity, reducing pressure on foreign exchange demand and stabilising fuel prices.
However, industry stakeholders have recently reported implementation challenges, with an increasing proportion of crude oil supplies reverting to dollar-denominated transactions.
According to The Punch, findings indicate that the refinery’s latest pricing structure is intended to align product sales with the currency used to procure a significant portion of its crude oil feedstock.
Sources familiar with the development disclosed that the refinery had become increasingly exposed to foreign exchange risks because it was purchasing more crude oil in dollars while selling a substantial volume of refined products locally in naira.
One source told the media that the Nigerian National Petroleum Company Limited (NNPCL) now supplies a larger share of crude oil to the refinery under dollar-denominated arrangements.
Another source explained that the growing disparity between crude procurement and product sales necessitated the transition.
“Dangote Refinery is receiving fewer naira-denominated crude cargoes from NNPCL than 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 source said.
Experts believed that the decision would significantly affect petroleum marketers, many of whom rely on Dangote Refinery for nationwide product supply.
The refinery’s dollar benchmark is also expected to influence pricing across the downstream petroleum market, depending on movements in the foreign exchange market and international crude oil prices.
Although marketers will now purchase products using the new dollar pricing template, the eventual retail pump price of petrol will still depend on several factors, including the prevailing naira-to-dollar exchange rate, logistics and transportation costs, marketers’ operating expenses and other regulatory charges.
In recent months, pump prices have fluctuated in response to changes in crude oil prices, exchange rates and increasing competition among fuel suppliers.
As Nigeria’s largest domestic refiner, Dangote Petroleum Refinery’s pricing decisions have become a key benchmark closely monitored by marketers and consumers alike.
