Dangote Refinery has set the ex-depot price of petrol at $0.779 per litre under a new pricing framework that shifts all transactions to dollar denominations. The move marks a significant departure from naira-based sales that began when the Federal Government introduced its naira-for-crude arrangement on October 1, 2024.
The refinery, which produces 700,000 barrels daily, rolled out the revised pricing on Monday across its product range. Diesel now costs $1.087 per litre at the gantry, while aviation fuel sits at $0.942 per litre, and coastal petrol deliveries are priced at $1,044.62 per metric tonne.
In a notice to petroleum marketers and customers, the refinery's Group Commercial Operations declared all previously issued naira-denominated invoices and deal recaps invalid. "All issued naira coastal and gantry PFIs and Deal Recaps are now invalid, and no payments should be made against them," the notice read.
The company clarified that liquefied petroleum gas transactions remain unaffected by the transition. According to the refinery, the shift doesn't apply to LPG sales.
Sources close to the development explained that the refinery faced mounting foreign exchange risks from a currency mismatch in its operations. The refinery receives the bulk of its crude supplies from the Nigerian National Petroleum Company Limited under dollar-denominated arrangements, yet had continued selling refined products domestically in naira.
One official told reporters the imbalance had grown unsustainable. "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 source said.
Volatile international crude prices and exchange-rate uncertainty pushed the refinery to act, he added. The currency mismatch, combined with these factors, made the migration to dollar-based product sales essential, according to the source.
The decision underscores how Nigeria's downstream petroleum sector continues to shift following deregulation. Dangote Refinery has become the country's largest supplier of refined petroleum products, a position that carries considerable weight in pricing dynamics across the industry.
Petroleum marketers who source products directly from the refinery for distribution nationwide will now need to adjust their operations accordingly. The new pricing structure is expected to ripple through their supply chains and potentially reshape how they manage costs and margins.
The timing of the announcement—issued just days after an earlier July 9 email signalling the transition—gave marketers limited notice to adapt their payment systems and financial arrangements. The refinery emphasised that the new USD prices became effective immediately on July 13, 2026.
