The Federal Government has initiated high-level discussions with the Dangote Petroleum Refinery to reverse its recent decision to sell petroleum products in United States dollars, a policy shift that has driven fuel prices higher across Nigeria. According to sources familiar with the talks, officials are working on a framework to allow the refinery to resume domestic fuel sales in naira by increasing crude oil supplies under a naira-for-crude arrangement.
Government Agencies Lead Negotiations
Senior industry sources report that the Nigerian National Petroleum Company Limited (NNPCL), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) are jointly engaging Dangote Refinery to find a lasting solution. The discussions focus on addressing the challenges that prompted the refinery to adopt dollar-denominated pricing earlier this week, according to a report by PetroleumPriceNG.
One source, who requested anonymity due to the sensitivity of the negotiations, stated: "The government understands the implications of the refinery's dollar pricing policy. Discussions are progressing towards increasing crude oil supplied in naira, while the refinery is willing to return product sales to naira once that framework is firmly established."
Why Dangote Switched to Dollar Sales
The refinery recently announced that Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), and Aviation Turbine Kerosene (ATK) would now be sold in US dollars. Industry insiders said the decision was driven by changes in the refinery's crude procurement structure, with a larger share of crude now being purchased in dollars. Meanwhile, many refined products were still being sold locally in naira, exposing the company to significant foreign exchange losses. To reduce this currency mismatch and manage growing exchange rate risks, the refinery aligned its product sales with its dollar-denominated crude purchases.
Petrol Prices Climb Across Depots
Although Dangote Refinery has maintained its official PMS gantry price at $0.779 per litre, the impact of dollar pricing has already filtered through the market. Market intelligence indicates that the effective domestic benchmark has climbed to around ₦1,200 per litre, roughly ₦125 higher than the refinery's previous naira-equivalent benchmark. Across Lagos, Port Harcourt, Warri, and Calabar, marketers have adjusted ex-depot prices to between ₦1,190 and ₦1,230 per litre, reflecting the growing influence of the new pricing model.
Hope for Market Stability
Industry stakeholders believe a successful outcome from the ongoing negotiations could help stabilise fuel prices, ease foreign exchange pressures on marketers, and restore confidence in the downstream petroleum market. However, sources cautioned that no final agreement has been reached. Talks are expected to continue as both the Federal Government and Dangote Refinery work toward a commercially viable arrangement that guarantees sustainable crude supply while protecting the refinery's operational efficiency.
Dangote Refinery Releases Fresh Fuel Prices in Dollars
Legit.ng earlier reported that Dangote Petroleum Refinery released a fresh price list for its petroleum products after officially ending naira-denominated sales for marketers, introducing a new United States dollar pricing regime for major fuel products. The new policy, which took effect on Monday, July 13, 2026, requires marketers purchasing products through gantry and coastal loading to make all payments in US dollars, marking one of the refinery's biggest commercial changes since it began supplying refined petroleum products to the Nigerian market. The move is expected to significantly influence Nigeria's downstream petroleum sector, where Dangote Refinery has become a dominant supplier of petrol, diesel, and aviation fuel.
