Dangote Refinery Switches Petrol Sales To Dollar Pricing, Sets PMS At $0.779 Per Litre

Dangote Petroleum Refinery has moved to dollar-denominated transactions for the sale of refined petroleum products, ending naira payments for petrol, diesel and aviation fuel purchases from the facility.

 

The refinery announced a new pricing template on Monday, fixing the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, at $0.779 per litre.

 

Under the revised structure, Automotive Gas Oil (diesel) is priced at $1.087 per litre, while Aviation Turbine Kerosene (ATK) is set at $0.942 per litre. Coastal supplies of petrol were fixed at $1,044.62 per metric tonne.

 

The company disclosed the new rates in a notice sent to petroleum marketers and customers, stating that all previously issued naira-denominated Proforma Invoices and Deal Recaps for gantry and coastal transactions were no longer valid.

 

The notice signed by the refinery’s Group Commercial Operations department stated that the dollar pricing took effect from July 13, 2026.

 

“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 notice read.

 

The refinery, however, clarified that the transition would not affect Liquefied Petroleum Gas transactions.

 

The development marks a major shift from the naira-for-crude arrangement introduced by the Federal Government in October 2024, which allowed local refiners to receive crude oil supplies in naira to support domestic refining.

 

Industry sources said the move was driven by foreign exchange pressures and a mismatch between the currency used for crude purchases and the currency used for selling refined products.

 

According to the sources, a larger share of crude supplied to the refinery is now based on dollar-denominated transactions, increasing the refinery’s exposure to exchange rate risks.

 

The new pricing structure is expected to affect petroleum marketers who rely on Dangote Refinery for product supply and may influence fuel prices in the downstream sector.

 

However, the final pump price of petrol will depend on factors including the naira-dollar exchange rate, transportation costs, logistics expenses, regulatory charges and marketers’ profit margins.

 

The refinery’s decision comes amid continued volatility in Nigeria’s petroleum market, with stakeholders monitoring its pricing decisions due to its growing role as the country’s largest supplier of refined petroleum products.