Dangote Petroleum Refinery has resumed selling Premium Motor Spirit (PMS) in naira after a brief switch to dollar transactions, but the return comes with a ₦140 per litre price increase that could push pump prices even higher across Nigeria.
New ex-depot price takes immediate effect
The refinery raised its ex-depot petrol price from ₦1,075 to ₦1,215 per litre, effective 22 July 2026. A notice from the refinery's commercial department confirmed that all unloaded gantry volumes would be repriced at the new rate. Marketers were instructed to proceed with orders and contact the department for clarifications.
The price hike represents an increase of about 13%. The refinery also raised its coastal loading price from ₦1,441,575 per metric tonne to ₦1,602,495 per metric tonne.
Why Dangote stopped accepting naira
Last week, Dangote Refinery suspended petrol loading and asked marketers to pay in dollars instead of naira. The decision came after the refinery said it was no longer receiving enough crude oil through the Federal Government's naira-for-crude arrangement and had to source additional crude from the international market using dollars.
That move caused panic in the fuel market. Many independent marketers stopped buying from the refinery because sourcing foreign exchange for every petrol purchase became nearly impossible. As a result, marketers turned to private depots, where ex-depot prices jumped to around ₦1,275 per litre, tightening supply across the country.
Industry players warned that keeping petrol sales in dollars would increase pressure on Nigeria's foreign exchange market. Based on the country's estimated daily petrol consumption of about 50 million litres, marketers would need roughly $40 million every day, or more than $14 billion annually, to continue buying fuel under the dollar payment system.
A senior regulatory official defended the refinery's decision, stating: "It's a pretty straightforward issue. The naira-for-crude deal is not to Dangote's advantage right now because the company is sourcing crude in dollars. He has absorbed a lot. But maybe he has got to a breaking point. So he has to do stuff to recover costs. And that's why he wants to share that burden with off-takers."
Government intervenes
Following complaints from petroleum marketers and concerns over the pressure on the naira, the Federal Government stepped into discussions with Dangote Refinery. Those talks appear to have resulted in the refinery returning to naira transactions, although negotiations over the future of the naira-for-crude arrangement are still ongoing.
According to Petroleumprice.ng, the refinery has suspended its dollar pricing and resumed selling petrol in naira for now.
Impact on Nigerians
The ₦140 ex-depot price increase is expected to trickle down to retail pumps across major cities, leading to higher costs for consumers. While the return to naira payments is expected to restore normal fuel loading and ease supply challenges, the higher ex-depot price could still translate into more expensive fuel at filling stations.
Already, petrol was reportedly selling for as much as ₦1,300 per litre in parts of Lagos and other states on Wednesday, with international crude oil prices remaining elevated amid renewed tensions in the Middle East. Unless competition among marketers or a drop in global crude oil prices brings relief, Nigerians may face another round of higher pump prices.
