Dangote Refinery Shifts to Dollar Pricing for Fuel

The Dangote Petroleum Refinery has announced a shift to dollar-denominated pricing for its petroleum products, a decision influenced by the inadequacy of the Nigerian naira crude oil supply. This change comes as the refinery, which has a capacity of 650,000 barrels per day and represents a $20 billion investment, struggles to meet domestic fuel demand with local crude supplies.

As of July 13, 2026, the refinery's ex-depot price for Premium Motor Spirit (PMS) is set at 0.779 per liter, while diesel is priced at 1.087 and aviation fuel at 0.942. The reliance on dollar purchases exposes the refinery to exchange rate risks, especially as the official exchange rate stands at N1,380 per US dollar.

This shift is expected to increase domestic pump prices, with predictions of petrol costing as much as N1,600 per liter. Industry stakeholders, including the Petroleum Product Retail Outlet Owners Association of Nigeria (PETROAN) and the Independent Petroleum Marketers Association of Nigeria (IPMAN), have raised alarms about the implications of dollar-denominated transactions on the Nigerian economy.