Dangote Petroleum Refinery has ended the sale of Premium Motor Spirit in naira and officially switched to dollar-denominated transactions, introducing a new pricing template for petroleum products.
Under the new pricing structure, which took effect on Monday, the refinery fixed the ex-depot price of petrol at $0.779 per litre, while Automotive Gas Oil will sell for $1.087 per litre and Aviation Turbine Kerosene for $0.942 per litre.
Coastal deliveries of petrol have also been priced at $1,044.62 per metric tonne.
The move brings an end to naira payments for refined petroleum products, which began after the Federal Government introduced the naira-for-crude arrangement on October 1, 2024.
In a notice sent to petroleum marketers and customers, the refinery announced that all previously issued naira-denominated Proforma Invoices and Deal Recaps for gantry and coastal transactions were no longer valid.
“Following our email on the 9th of July 2026, regarding the transition from Naira to United States Dollars, please note that all issued Naira Coastal and Gantry PFIs/Deal Recaps are now invalid, and no payments should be made against them,” the notice stated.
It added: “The applicable USD prices for each product, effective today, July 13, 2026, are provided below.”
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The refinery, however, clarified that the new payment system does not apply to Liquefied Petroleum Gas, LPG.
“Also note that this transition to USD does not apply to LPG transactions,” the company said.
Industry sources said the refinery adopted the new pricing system to address the growing mismatch between the currency used to buy crude oil and the currency in which it sold refined products.
According to one source, Dangote Refinery now receives a larger share of its crude oil supplies from the Nigerian National Petroleum Company Limited, NNPCL, under dollar-based arrangements, while a significant portion of its refined products had continued to be sold in naira, exposing the company to foreign exchange risks.
Another source explained: “Dangote refinery is receiving fewer naira-denominated crude cargoes from NNPCL compared with dollar-denominated cargoes, while a larger volume of its petroleum products has been sold in naira. The resulting currency mismatch, combined with volatility in international crude oil prices and continued exchange-rate uncertainty, made it necessary to migrate product sales to dollars.”
