Dangote Petroleum Refinery has switched to dollar-denominated pricing for petrol, diesel and aviation fuel, ending naira sales effective Monday, in a move expected to ripple through Nigeria’s downstream fuel market.
Industry sources said the shift follows a widening currency mismatch: the refinery increasingly receives crude from the NNPCL under dollar-denominated deals, while continuing to sell a large share of its refined products in naira, exposing it to significant exchange-rate risk.
One official said the refinery needs over 15 crude cargoes monthly, but NNPCL is struggling to supply even three under the naira-for-crude arrangement.
Under the new pricing template, petrol is now priced at $0.779 per litre at the gantry, diesel at $1.087, and aviation fuel at $0.942, with coastal PMS at $1,044.62 per metric tonne. All previous naira-denominated invoices have been voided.
Oil and gas analyst Tunji Oyebanji told Daily Trust that the move signals Nigeria isn’t producing enough crude to sustain the naira-for-crude scheme, warning it could increase dollar demand and further weaken the naira.
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