Lagos, Nigeria — The Dangote Refinery, Africa’s premier oil processing facility, has announced a pivotal shift in its pricing strategy, transitioning from the Nigerian naira to the United States dollar for refined product sales. This decision, effective July 13, 2026, marks a significant departure from the Federal Government’s naira-for-crude plan introduced in October 2024. Under the new pricing structure, Automotive Gas Oil (diesel) will be priced at $1.
087 per litre, Aviation Turbine Kerosene (ATK) at $0. 62 per metric tonne.
The refinery has informed marketers and customers that all naira — denominated Proforma Invoices and Deal Recaps are now invalid.
The move to dollar pricing is attributed to the widening disparity between the currencies used to purchase crude oil and those used to sell refined goods.
As the Nigerian National Petroleum Company Limited (NNPCL) increasingly bills crude oil purchases in dollars, the Dangote Refinery faced exchange-rate risks with domestic gasoline sales in naira. This change is likely to impact Nigeria’s downstream petroleum sector, with marketers now buying fuel using dollar benchmarks.
However, retail fuel prices will continue to be influenced by factors such as exchange rates, transportation costs, taxes, and marketer margins.
The shift to dollar pricing also raises questions about the longevity of Nigeria’s naira-for-crude strategy, which aimed to bolster local refining, ease foreign exchange demand, and stabilize domestic oil prices. Last year, the Dangote Refinery considered restricting fuel delivery to the Nigerian market due to unresolved concerns with the Naira-for-Crude oil exchange arrangement.
As the Dangote Refinery expands its operations from the current 650,000 barrels per day to 1. 4 million bpd by October 2025, the implications of this pricing shift for Nigeria’s fuel supply and economic activity are significant.
The next steps in the refinery’s expansion and the government’s response to the energy sector’s challenges will be critical developments to monitor.
*Additional reporting by ImNews | Sources consulted: 5*
—
This original article was produced by the ImNews editorial team
Source: Africa.businessinsider
Source: Chinedu Okafor
