Dangote Refinery Authorized to Sell Fuel in Dollars

The Nigerian regulatory authority has granted Dangote Petroleum Refinery the right to sell fuel in U.S. dollars instead of naira, a move aimed at allowing the refinery to recover costs incurred in purchasing crude oil. Senior sources within the regulatory agency indicated that this decision aligns with the provisions of the Petroleum Industry Act, which permits operators to earn returns on investments and recover eligible costs.

The refinery's need to absorb costs has been exacerbated by the ongoing offshore crisis in the Middle East, pushing oil prices to around $80 per barrel. On July 9, 2026, Dangote announced new ex-depot prices for petrol, diesel, and aviation fuel, with petrol priced at 0.779 per liter and diesel at 1.087 per liter.

The new pricing structure does not apply to liquefied petroleum gas. The decision has faced criticism from local petroleum product markets, which argue that the scarcity of dollars is not the root cause of the pricing adjustments.