Dangote Petroleum Refinery has officially transitioned to dollar-denominated sales of refined petroleum products, introducing a new pricing template that sets the ex-depot price of Premium Motor Spirit (PMS) at $0.779 per litre.
The move ends naira payments for petroleum products under the refinery’s operations, bringing to a close the arrangement that began with the Federal Government’s naira-for-crude initiative introduced in October 2024.
Under the revised pricing structure, Automotive Gas Oil (diesel) will sell at $1.087 per litre, Aviation Turbine Kerosene at $0.942 per litre, while coastal deliveries of petrol have been fixed at $1,044.62 per metric tonne.
In a notice issued to marketers and customers, the refinery announced that all previously issued naira-denominated Proforma Invoices and Deal Recaps for gantry and coastal transactions had been cancelled, with all future payments to be made in United States dollars. The company, however, clarified that Liquefied Petroleum Gas (LPG) transactions will continue under the existing arrangement.
According to industry sources, the shift was necessitated by the growing imbalance between the currency used to purchase crude oil and the currency in which refined products were being sold.
Officials explained that the refinery now receives a larger share of its crude oil supply from the Nigerian National Petroleum Company Limited (NNPCL) through dollar-denominated transactions, while much of its domestic fuel sales had remained in naira, exposing the company to foreign exchange risks.
The adoption of a dollar-based pricing model is expected to provide a more consistent commercial framework while reducing the impact of exchange rate volatility and fluctuations in global crude oil prices.
The development is also expected to affect petroleum marketers who source products directly from the refinery, with the eventual retail pump price depending on prevailing exchange rates, logistics costs, regulatory charges, transportation expenses and marketers’ operating margins.
The latest policy shift highlights the continued foreign exchange challenges facing Nigeria’s downstream petroleum sector and raises fresh questions about the future of the Federal Government’s naira-for-crude policy and its impact on domestic fuel pricing.
