The Dangote Petroleum Refinery has commenced the sale of refined petroleum products exclusively in US dollars, ending naira-denominated transactions from July 13, 2026. The policy change has led to a fresh increase in ex-depot fuel prices across Nigeria’s downstream market, although verified industry figures show the rise is significantly lower than widely circulated social media claims.
The refinery said the decision was driven by the need to align its revenue with its cost structure. Crude oil purchases and a substantial portion of the refinery’s operating expenses are denominated in US dollars, making naira-based sales increasingly difficult to sustain amid continued exchange-rate volatility.
According to the refinery’s official pricing schedule, premium motor spirit (petrol) is now priced at $0.779 per litre, while automotive gas oil (diesel) sells for $1.087 per litre. Using the prevailing official exchange rate of about ₦1,380.50 to the US dollar, the prices translate to approximately ₦1,075 per litre for petrol and ₦1,500 per litre for diesel before additional logistics and distribution costs.
The revised pricing has prompted independent marketers and depot operators to adjust wholesale, or ex-depot, prices upward by between ₦30 and ₦90 per litre. Market checks indicate that petrol is currently trading between ₦1,125 and ₦1,175 per litre at major depots, well below the ₦1,250 per litre figure circulating on social media.
Similarly, industry participants dismissed claims that diesel prices had surged to ₦1,650 per litre, noting that prevailing wholesale prices remain broadly in line with the refinery’s official dollar-based pricing after exchange-rate conversion and distribution costs.
The development underscores the growing influence of foreign exchange movements on Nigeria’s deregulated downstream petroleum market. With wholesale prices now directly linked to the value of the naira against the US dollar, any further depreciation of the local currency could translate into higher ex-depot and retail pump prices.
Analysts say the new pricing model may improve the refinery’s financial stability by reducing currency mismatch risks and strengthening its ability to meet foreign currency obligations. However, it also transfers greater exchange-rate exposure to fuel marketers and, ultimately, consumers.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has yet to announce any retail price benchmark following the refinery’s policy shift. As a result, filling stations are expected to continue setting pump prices based on wholesale acquisition costs, transportation expenses, operating margins and prevailing market conditions.
For now, verified industry data indicates that wholesale fuel prices have increased moderately, while viral reports suggesting petrol has already reached ₦1,250 per litre remain unsupported by official pricing and market evidence.
