Dangote Petroleum Refinery has officially commenced the sale of Premium Motor Spirit (PMS), popularly known as petrol, in United States dollars, bringing an end to its naira-denominated transactions as it unveiled a new pricing structure for refined petroleum products.
Under the new pricing template, the refinery fixed the ex-depot price of petrol at $0.779 per litre, while also announcing revised benchmark prices for diesel and aviation fuel. The policy took effect following the refinery’s transition to dollar-based sales.
Industry sources attributed the decision to growing foreign exchange pressures, explaining that the refinery now receives a larger share of its crude oil supply from the Nigerian National Petroleum Company Limited (NNPCL) through dollar-denominated transactions, while much of its refined products had continued to be sold locally in naira.
According to the sources, the imbalance between dollar-denominated crude purchases and naira-based product sales exposed the refinery to significant foreign exchange risks, making the transition to dollar sales necessary.
The development is expected to have far-reaching implications for Nigeria’s downstream petroleum sector, with marketers and industry stakeholders closely monitoring its potential impact on domestic fuel prices and the future of the Federal Government’s naira-for-crude initiative.
Analysts say the shift also reflects the persistent foreign exchange challenges confronting the country’s energy sector despite increasing local refining capacity aimed at reducing dependence on imported petroleum products.
