LA SUITE APRÈS LA PUBLICITÉ

Dangote Petroleum Refinery has officially transitioned from naira-denominated pricing to a United States dollar-based framework for its refined petroleum products, setting the ex-depot price of Premium Motor Spirit – PMS at $0.779 per litre.

This major policy shift, communicated via an official notice to petroleum marketers and customers, invalidates all previously issued naira Proforma Invoices – PFIs and Deal Recaps for coastal and gantry transactions. Under the new pricing structure effective July 13, 2026, Automotive Gas Oil (diesel) is priced at $1.087 per litre, Aviation Turbine Kerosene (Jet A1) at $0.942 per litre, and coastal petrol deliveries at $1,044.62 per metric tonne, while Liquefied Petroleum Gas – LPG remains under its existing naira-based arrangement.

By anchoring domestic fuel costs to the US dollar, the actual price paid by marketers in Nigerian naira will now fluctuate dynamically in response to foreign exchange market movements. At the current official exchange rate of N1,380.50 to the dollar, the new $0.779 benchmark translates to approximately N1,075.61 per litre.

However, unlike the previously stable naira rates, any depreciation or appreciation of the local currency will immediately reflect in the ex-depot cost, meaning that marketers and, ultimately, consumers will bear the direct impact of exchange rate volatility.

This policy shift effectively replaces the refinery’s recent strategy of fixed naira pricing. Just weeks earlier, on July 2, 2026, Dangote Refinery had implemented its fourth consecutive price cut within a month, lowering the ex-depot cost of petrol to a flat N1,075 per litre. With the introduction of the dollar benchmark, that fixed price cap is gone.

Consequently, while the base price remains relatively aligned with the previous discount, the final retail pump price across Nigeria will continue to be heavily influenced by fluctuating currency rates, alongside transportation costs, distribution margins, and local taxes.

The decision highlights the economic realities of operating a world-class refinery within global energy markets, despite local policy interventions. In October 2024, the Federal Government introduced a “naira-for-crude” initiative intended to ease foreign exchange pressure and stabilize local pump prices. While Dangote Refinery initially adopted naira-denominated sales under this program, the facility remains bound to international pricing structures, prompting this strategic pivot to safeguard its commercial viability.

Providing context to this transition, Dangote Refinery’s Chief Executive Officer, David Bird, had previously clarified in March 2026 that the facility receives no domestic discounts on crude oil supplies. Bird emphasized that the refinery purchases Nigerian crude at prevailing international benchmark prices, making it fully vulnerable to global market forces, rising freight rates, insurance, and financing costs.

With shipping costs having surged significantly during volatile periods, transitioning to a dollar-denominated framework allows the refinery to align its pricing directly with its operational expenditures and international obligations.