Dangote Refinery Fixes Petrol Price at $0.779 Per Litre Under New Dollar Pricing Template

Dangote Refinery Fixes Petrol Price at $0.779 Per Litre in New Dollar-Based Pricing Template

Nigeria’s downstream petroleum sector has entered a new phase after Dangote Petroleum Refinery officially introduced a dollar-denominated pricing template for refined petroleum products. Under the new pricing structure, the refinery has fixed the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, at $0.779 per litre, marking a significant departure from its previous naira-based pricing system. The announcement has generated widespread attention across the oil and gas industry, with marketers, importers, and consumers closely monitoring what the development could mean for fuel prices in Nigeria.

According to a notice issued by the refinery, the new pricing structure became effective immediately and applies to the sale of several refined petroleum products.

The revised prices include: Premium Motor Spirit (Petrol): $0.779 per litre. Automotive Gas Oil (Diesel): $1.087 per litre. Jet A1 (Aviation Fuel): $0.942 per litre.  The refinery also published revised prices for coastal deliveries and other commercial transactions involving bulk petroleum products.

One of the biggest changes introduced under the new template is that transactions for refined petroleum products will now be conducted in United States dollars. The refinery informed customers that all previous naira-denominated invoices, quotations, and deal recaps have become invalid under the new system. However, the new arrangement does not apply to Liquefied Petroleum Gas (LPG), which remains outside the revised pricing structure.

The introduction of dollar-denominated pricing follows broader developments within Nigeria’s petroleum sector, including changes to crude oil supply arrangements and the expiration of previous naira-based crude supply agreements. Industry observers believe the refinery’s decision reflects the realities of international crude oil trading, where transactions are largely conducted in U.S. dollars.

By aligning refined product sales with global market practices, the refinery may be seeking greater pricing stability and operational efficiency.

Although the refinery has announced its ex-depot price, the amount motorists eventually pay at filling stations will depend on several additional factors, including: Exchange rate movements. Transportation costs. Distribution expenses. Retail marketers’ margins. Market competition.

As a result, pump prices may vary across different regions of the country.

The announcement has sparked discussions among petroleum marketers and industry analysts. Some believe the move could improve pricing transparency by aligning local transactions more closely with international market realities. Others have expressed concern that increased dependence on dollar transactions could expose domestic fuel prices to exchange rate fluctuations.

Many analysts expect regulators and marketers to continue evaluating the long-term effects of the policy on Nigeria’s deregulated fuel market.

The announced $0.779 per litre represents the ex-depot price, meaning it is the amount marketers pay when purchasing fuel directly from the refinery. Consumers should note that this is not the retail pump price. Additional operational costs incurred between the depot and filling stations will influence the final amount motorists pay.

Dangote Refinery’s decision to introduce a dollar-based pricing template represents another major milestone in Nigeria’s evolving petroleum industry. While the refinery says the move aligns its operations with international commercial practices, the full impact on marketers, fuel prices, and consumers will become clearer as the market adjusts to the new pricing model.

For now, stakeholders across the industry will be watching closely to see how the policy influences competition, product availability, and the overall cost of fuel in Nigeria.