The Dangote Petroleum Refinery has begun selling petrol and other refined petroleum products in U.S. dollars, marking a major shift in Nigeria’s downstream oil market following the breakdown of the Federal Government’s naira-for-crude arrangement.
Under the new pricing template, the refinery fixed the ex-depot price of petrol at $0.779 per liter, with diesel priced at $1.087 per liter and aviation fuel at $0.942 per liter. The company also informed marketers that all previously issued naira-denominated invoices and deal recaps for petrol, diesel and aviation fuel had become invalid, although Liquefied Petroleum Gas (LPG) transactions remain unaffected.
Industry sources say the transition was driven by growing foreign exchange exposure as a larger share of the refinery’s crude oil is now being supplied under dollar-denominated arrangements, creating a mismatch with naira-based fuel sales. The move effectively brings an end to the naira-for-crude framework introduced in 2024, which had allowed local fuel transactions to be settled in naira.
The development is expected to have significant implications for fuel marketers, pump prices and Nigeria’s foreign exchange market, with analysts warning that dollar-denominated transactions could increase pressure on importers and distributors if no replacement mechanism is introduced. Government officials are yet to announce whether a new domestic crude supply arrangement will replace the suspended naira-for-crude deal.
