Dangote Refinery Denies Dollar Policy Linked to Petrol Price Surge
Dangote Petroleum Refinery has rejected assertions that its newly introduced dollar-based sales framework is responsible for the recent increase in petrol prices at various filling stations across Nigeria. The refinery clarified that it has not yet received any dollar payment from marketers, contradicting claims that the policy shift directly led to higher pump prices.
According to a senior official at the refinery, the petrol currently selling at elevated prices was purchased before the new framework took effect. This means the price hike reflects old inventory rather than goods acquired under the dollar payment arrangement, as reported by Punch.
Official Gantry Price and Current Market Rates
The refinery has maintained its official gantry price at $0.779 per litre, which equates to approximately N1,077 per litre at the prevailing exchange rate. The official explained that the policy change aims to align sales with the refinery's crude oil procurement obligations and ensure the facility's long-term viability, not to trigger an immediate spike in pump prices.
Data from Petroleumprice.ng reveals notable variations in ex-depot PMS prices across Lagos, with several marketers quoting figures well above the refinery's naira-equivalent gantry price. The breakdown of prices at major depots includes:
- Pinnacle: N1,130 per litre
- MRS: N1,095 per litre
- African Terminal: N1,127 per litre
- Sahara: N1,127 per litre
Some Dangote-linked marketers were selling petrol at approximately N1,125 per litre, a premium of around N48 above the refinery's stated ex-depot price.
Expert Warns of Future Cost Implications
Despite the refinery's assurances, energy analysts have raised concerns about the medium-term impact of settling domestic fuel purchases in foreign currency. Jeremiah Olatide, Chief Executive Officer of Petroleumprice.ng, noted that many marketers are unfamiliar with dollar-based payment obligations for locally sourced fuel, causing delays in fresh product purchases and adding uncertainty to the downstream market.
Olatide cautioned that if the policy remains in place, it could raise operating costs for fuel traders and eventually lead to higher pump prices nationwide, including at NNPC-operated stations. He stated, "This dollar payment system could raise operating costs and eventually push up pump prices across Nigeria."
Broader Context: Diesel Prices Also Surge
Earlier, Legit.ng reported that the National Bureau of Statistics (NBS) revealed that the average retail price of Automotive Gas Oil (AGO), commonly known as diesel, increased by 86.40% year-on-year to N3,277.47 per litre in May 2026. The figure rose from N1,758.26 per litre in May 2025. On a month-on-month basis, diesel prices increased by 32.44%, rising from N2,474.69 per litre in April 2026.
