Dangote Refinery Abandons Naira for Dollar-Based Fuel Pricing

The Dangote Petroleum Refinery has transitioned its fuel product pricing to U.S. dollars, moving away from the local naira-for-crude initiative. This strategic pivot follows mounting operational friction, as the company contends with a persistent currency mismatch and the necessity of sourcing crude oil on the volatile international market.

Editorial·July 14, 2026·reads: 492

Dangote Refinery Abandons Naira for Dollar-Based Fuel Pricing

Edwin Devakumar, Vice President of Dangote Group, confirmed the refinery is now setting ex-depot prices at $0.779 per litre for petrol, $1.087 for diesel, and $0.942 for aviation fuel. The move signals a breakdown in the government's October 2024 program, which intended to stabilize foreign exchange demand by allowing local refiners to pay for crude in naira. Instead, the refinery found itself absorbing significant losses by selling finished products in the local currency while paying for its raw inputs in dollars.

While the state-owned NNPC recently increased crude allocations to the facility, the refinery remains reliant on imported cargo priced at international rates. By shifting to dollar-denominated sales, the company effectively offloads exchange-rate risks onto fuel marketers. This transition is expected to increase local demand for U.S. currency, potentially amplifying domestic price volatility as the cost of fuel becomes directly tethered to the fluctuating strength of the naira against the dollar.