Dangote Refinery Shifts to Dollar Sales for Petrol

Dangote Petroleum Refinery announced a major shift in its commercial operations by transitioning to dollar-denominated sales for petroleum products, effective October 1, 2024. The new pricing template sets the price of petrol at $0.779 per liter, diesel at $1.087 per liter, and aviation fuel at $0.942 per liter.

This decision reflects a significant change in Nigeria's downstream petroleum sector, as the refinery aims to address the currency mismatch caused by the predominance of naira-denominated transactions. The refinery has been receiving a larger share of its crude oil supply from the Nigerian National Petroleum Company Limited (NNPCL) in dollars, which has led to an imbalance in currency procurement.

The shift to dollar transactions is expected to impact fuel prices nationwide, as they will now be influenced by foreign exchange market movements and international crude oil prices. This change comes amid ongoing efforts to stabilize fuel prices and reduce dependence on imported fuel.