Dangote Refinery Shifts Fuel Sales to Dollar Pricing

Dangote Petroleum Refinery has resumed the sale of fuel in dollars, implementing a new dollar-denominated pricing framework for premium motor spirit (PMS), diesel, and aviation fuel. This pricing structure took effect on Monday and is expected to significantly influence Nigeria's downstream petroleum market by reshaping the price structure of refined petroleum products.

The new ex-depot prices are set at 0.779 per liter for petrol, 1.087 per liter for diesel, and 0.942 per liter for aviation fuel. Coastal delivery for petrol is pegged at 1,044.62 per metric ton.

The transition to a dollar-based commercial model comes as the refinery aims to mitigate the challenges posed by the naira's volatility and align its revenue with procurement costs. The refinery clarified that this new pricing does not apply to liquefied petroleum gas (LPG), which will continue under the existing payment structure.

Industry experts indicate that the final retail pump price for petrol will depend on various factors, including the naira-dollar exchange rate and logistics costs.