Dangote Refinery Shifts Fuel Sales to US Dollars

The Dangote Petroleum Refinery transitioned its refined petroleum product sales from naira to United States dollars on July 13, 2026. The refinery set ex-depot prices at $0.779 per litre for petrol, $1.087 per litre for diesel, and $0.942 per litre for aviation fuel. This shift effectively ends the naira-payment system established under the Federal Government's naira-for-crude arrangement in October 2024.

The refinery implemented the change to resolve a currency mismatch and reduce foreign exchange risk. While the Nigerian National Petroleum Company Limited increased the facility's crude allocation to seven cargoes in May, the refinery requires 13 to 15 monthly and must import the deficit at international dollar prices. On July 14, the refinery invalidated all previous naira-based invoices for gantry and coastal transactions.

The transition caused immediate price spikes at depots in Lagos, Port Harcourt, and Warri, where petrol rose by up to N113 per litre and diesel by up to N150 per litre. However, retail pump prices in Abuja remained flat between N1155 and N1205 per litre as of July 14.

Industry groups, including PETROAN and IPMAN, rejected the move and urged President Bola Tinubu to intervene. Marketers warned that dollar-denominated sales would strain the foreign exchange market and increase pump price volatility. Some energy experts defended the shift as a commercial necessity, while critics argued that domestic sales should remain in the legal tender.