Dangote Petroleum Refinery has introduced a new pricing system by fixing the ex-depot price of Premium Motor Spirit (PMS), also known as petrol, at $0.779 per litre. The company also announced new benchmark prices for diesel and aviation fuel after officially changing its transactions from the Nigerian naira to the United States dollar.
Under the new pricing structure, diesel will now sell at $1.087 per litre, while aviation fuel has been priced at $0.942 per litre. Petrol supplied through coastal deliveries has also been set at $1,044.62 per metric tonne.
The new prices became effective on July 13, 2026, and mark the end of naira payments for refined petroleum products. This change follows the gradual decline of the naira-for-crude arrangement that began in October 2024, when local refiners were allowed to buy crude oil in naira.
In a notice sent to petroleum marketers and customers, Dangote Refinery stated that all previously issued invoices and transaction documents prepared in naira were no longer valid. Customers were advised not to make payments using the old pricing system and instead use the newly announced dollar rates for all petrol, diesel, and aviation fuel purchases.
However, the refinery clarified that the new policy does not apply to Liquefied Petroleum Gas (LPG), meaning cooking gas transactions will continue under the existing payment arrangement.
According to industry sources, the refinery introduced the new pricing model to match the currency used to buy crude oil with the currency used to sell refined products. In recent months, a larger portion of the refinery’s crude oil supply from the Nigerian National Petroleum Company Limited (NNPCL) has been purchased in US dollars rather than naira.
Selling petroleum products in naira while buying crude oil in dollars created financial risks for the refinery due to fluctuations in exchange rates. The rising cost of foreign exchange and changes in global crude oil prices also contributed to the decision to adopt a single dollar-based pricing system.
The move is expected to affect petroleum marketers across Nigeria, many of whom buy products directly from Dangote Refinery before distributing them nationwide. While the refinery has announced its new selling prices, the final pump price paid by consumers will still depend on several factors. These include the naira-to-dollar exchange rate, transportation costs, storage expenses, government charges, and marketers’ operating costs.
The Federal Government had earlier introduced the naira-for-crude initiative to support local refining, reduce pressure on Nigeria’s foreign exchange market, and help stabilize fuel prices. However, industry experts say the arrangement has faced challenges as more crude oil transactions gradually returned to dollar payments.
This latest decision highlights the continued foreign exchange pressures in Nigeria’s downstream petroleum sector despite efforts to strengthen local refining and reduce dependence on imported fuel. It also raises fresh concerns about the future of the government’s naira-for-crude policy and how it may affect fuel prices going forward.
With Dangote Refinery now serving as Nigeria’s largest supplier of refined petroleum products, its pricing decisions are expected to play a major role in shaping fuel prices and competition in the country’s deregulated oil market. Industry stakeholders will continue to monitor exchange rates and global crude oil prices, as both factors are likely to influence future fuel costs for businesses and consumers.
