Dangote Petroleum Refinery has resumed selling petrol in naira after briefly requiring petroleum marketers to pay in United States dollars.
The refinery fixed its new gantry price at ₦1,215 per litre, up from the previous naira price of ₦1,075. The ₦140 increase represents a 13.02% rise.
Dangote also raised its coastal loading price to about ₦1.60 million per metric tonne. The refinery told marketers that the new prices took effect on July 22 and would apply to all pending volumes that had not yet been loaded.
The return to naira payments may make transactions easier for marketers, but it does not guarantee cheaper petrol for consumers.
Why Dangote Switched to Dollar Sales
Dangote moved to dollar pricing in mid-July after struggling to obtain enough crude oil through the Federal Government’s naira-for-crude programme.
The arrangement allows local refineries to buy Nigerian crude in naira and sell refined products in the same currency. The government introduced it to reduce pressure on foreign exchange and support domestic refining.
However, Dangote said it did not receive enough crude under the programme and had to buy more feedstock from the international market with dollars.
Reuters reported that the refinery received seven crude cargoes in May, although it needed between 13 and 15 cargoes every month to operate effectively. The currency mismatch meant the refinery bought part of its crude in dollars while selling petrol locally in naira.
The Nigerian National Petroleum Company Limited later said it supplied all the crude cargoes available under the programme. A Dangote official, however, said the refinery received about four million barrels monthly instead of the roughly 13 million barrels expected under the original arrangement.
The disagreement shows that Nigeria has not fully resolved the crude-supply problem behind the refinery’s pricing decisions.
Why Marketers Opposed Dollar Pricing
Independent marketers warned that dollar-denominated petrol sales would force them to compete for scarce foreign exchange before buying fuel.
This would expose their businesses to exchange-rate movements and increase the amount of working capital required to purchase petrol.
The dollar policy also created uncertainty across the downstream market. Some marketers suspended new purchases, while others turned to private depots that charged higher prices.
Oyewole Akanni, Western Zone Chairman of the Independent Petroleum Marketers Association of Nigeria, said private depots sold petrol for between ₦1,200 and ₦1,220 per litre before transportation costs. He added that price uncertainty forced some marketers to stop buying and temporarily close filling stations.
Returning to naira payments removes the immediate need for marketers to source dollars for each transaction. It may also improve supply by allowing more operators to resume purchases.
Why Pump Prices May Not Fall Immediately
The return to naira does not amount to a price reduction.
Dangote’s new ₦1,215 gantry price is ₦140 higher than the refinery’s previous naira price. Marketers must still add transportation, financing, regulatory and operating costs before selling petrol to consumers.
Some filling stations also hold petrol bought from private depots at higher prices. Those stations may maintain their current pump prices until they sell the expensive stock.
The final price will also vary across locations. Marketers that transport petrol over long distances will incur higher logistics costs than stations located close to Lagos and major distribution centres.
Nigeria’s petrol market now responds more directly to international crude prices, exchange rates and local supply conditions. Producing petrol locally removes some import-related costs, but it does not separate the country from global energy prices.
Expert View: Naira Sales Improve Access, Not Affordability
The most immediate benefit of the decision is easier access to products for Nigerian marketers.
Buying in naira removes the need to find dollars before placing orders and reduces the risk that exchange-rate movements will disrupt transactions.
However, the ₦1,215 price shows that the currency used for payment does not determine the entire cost of petrol.
Dangote still buys crude at prices linked to the international market. When the refinery imports crude or receives inadequate domestic supply, dollar costs can still influence the naira price charged to marketers.
The return to naira therefore addresses the payment problem, but it does not solve the underlying issues of expensive crude, unstable supply and rising global oil prices.
Why This Matters
Petrol prices affect nearly every part of Nigeria’s economy.
Higher fuel costs raise transport fares, delivery charges and production expenses. Farmers, manufacturers, retailers and logistics companies may pass those costs to consumers through higher prices.
Small businesses also depend on petrol generators when electricity supply fails. Another pump-price increase would raise their operating costs and reduce already narrow profit margins.
The decision to resume naira sales may reduce pressure on marketers and prevent further supply disruption. It could also limit the additional demand for foreign exchange that dollar-based local fuel purchases would have created.
But Nigerians should not expect the currency change alone to reduce prices at filling stations.
The real test is whether Dangote can secure enough crude, maintain stable production and prevent repeated pricing disruptions. Until Nigeria resolves those problems, petrol prices will continue to respond sharply to crude costs, exchange rates and supply uncertainty.