Dangote Petroleum Refinery has officially fixed the ex-depot price of Premium Motor Spirit (PMS), also known as petrol, at $0.779 per litre, following its decision to begin selling refined petroleum products in US dollars instead of naira.
The new pricing, which took effect on Monday, marks a major shift in the refinery’s operations and signals the end of naira payments introduced under the Federal Government’s naira-for-crude policy that began in October 2024.
According to a notice issued to petroleum marketers, all previously issued naira-denominated invoices for petrol, diesel and coastal transactions have been cancelled, with customers now required to pay in US dollars.
Under the new pricing template, diesel will sell at $1.087 per litre, while aviation fuel has been fixed at $0.942 per litre. Coastal deliveries of petrol have also been priced at $1,044.62 per metric tonne.
However, the refinery clarified that the new arrangement does not apply to Liquefied Petroleum Gas (LPG), which will continue under the existing payment structure.
Industry sources said the move was prompted by the growing imbalance between the currency used to purchase crude oil and the currency used to sell refined products.
According to the sources, Dangote Refinery now receives a larger share of its crude oil supplies under dollar-denominated agreements, exposing the company to foreign exchange risks while selling most of its products locally in naira.
The refinery reportedly adopted the dollar-based pricing model to reduce this currency mismatch and align its sales with international crude oil transactions.
The development is expected to have significant implications for petroleum marketers and could influence fuel pump prices across Nigeria, depending on the prevailing exchange rate, logistics costs and other market factors.
Industry observers also say the decision raises fresh questions about the future of the Federal Government’s naira-for-crude policy, which was introduced to support local refining, reduce pressure on foreign exchange and help stabilise fuel prices.
With Dangote Refinery now playing a dominant role in Nigeria’s downstream petroleum market, its pricing decisions are expected to continue shaping fuel prices nationwide.
