The transition terminates the refinery’s usage of naira for refined product sales, which was implemented as part of the Federal Government’s naira-for-crude plan in October 2024.
Under the new pricing schedule, Automotive Gas Oil (diesel) will cost $1.087 per litre, while Aviation Turbine Kerosene (ATK) will cost $0.942 per litre. Petrol delivered via coastal deliveries will cost $1,044.62 per metric tonne.
The refinery notified marketers and customers that all previously issued naira-denominated Proforma Invoices and Deal Recaps for gantry and coastal transactions were no longer legitimate.
The notice, signed by the refinery’s Group Commercial Operations, as seen in the Punch, read, “Following our email on the 9th of July, 2026, regarding the transition from Naira to United States Dollars, please note that all issued Naira Coastal and Gantry PFIs/Deal Recaps are now invalid, and no payments should be made against them.
The applicable USD prices for each product, effective today, July 13, 2026, are provided below.”
Dangote further stressed that the policy change has no effect on Liquefied Petroleum Gas (LPG), which would continue to be traded under the current payment arrangement.
According to industry sources, the refinery chose the dollar pricing model to address a widening disparity between the currencies used to acquire crude oil and those used to sell refined goods.
They highlighted that, while a higher portion of crude supplied by the Nigerian National Petroleum Company Limited (NNPCL) is now billed in dollars, many domestic gasoline sales were still in naira, exposing the refinery to exchange-rate risks.
The change is likely to have an impact on Nigeria’s downstream petroleum sector, as marketers that receive fuel directly from Dangote would now buy items using dollar benchmarks.
However, retail fuel prices will continue to be determined by a variety of factors, including exchange rates, transportation costs, taxes, and marketer margins.
The adjustment also raises new concerns about the longevity of Nigeria’s naira-for-crude strategy, which was designed to boost local refining, relieve pressure on foreign exchange demand, and assist in stabilizing domestic oil prices.
In March last year, the Dangote Refinery discussed the idea of restricting fuel delivery to the Nigerian market owing to unresolved concerns with the Naira-for-Crude oil exchange arrangement.
Source: Africabusinessinsider