Dangote Refinery resumes naira petrol sales, fixes gantry price at ₦1,215 per litre

Dangote Refinery resumes naira petrol sales, fixes gantry price at ₦1,215 per litre

The Dangote Petroleum Refinery has resumed the sale of Premium Motor Spirit (PMS) in naira, ending its temporary dollar-denominated pricing regime and fixing a new gantry (ex-depot) price of ₦1,215 per litre.

The refinery announced the development in a statement issued on Wednesday, saying the decision is expected to provide relief to petroleum marketers and consumers after days of uncertainty caused by the temporary switch to dollar pricing.

“Dangote Petroleum Refinery has resumed the sale of Premium Motor Spirit (PMS) in naira, providing a measure of relief to marketers and consumers. The gantry price is fixed at ₦1,215 per litre,” the company stated.

The announcement comes barely a week after the refinery suspended naira sales and introduced U.S. dollar pricing for some refined petroleum products, including petrol, diesel and aviation fuel.

Under the temporary pricing template circulated to marketers, petrol was sold at $0.779 per litre, diesel at $1.087 per litre, while aviation fuel (Jet A1) was priced at $0.942 per litre.

The refinery had attributed the temporary dollar pricing to commercial realities surrounding crude oil procurement and foreign exchange obligations, particularly following challenges associated with the Federal Government’s crude-for-naira initiative.

The decision immediately triggered higher depot prices across the downstream petroleum sector, forcing marketers to source products at increased costs.

Consequently, retail petrol prices rose sharply in several parts of the country. In Lagos, pump prices climbed to between ₦1,200 and ₦1,280 per litre, while motorists in the Federal Capital Territory (FCT) and many other states paid even higher prices due to transportation costs, logistics and regional distribution margins.

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Industry operators, including the Independent Petroleum Marketers Association of Nigeria (IPMAN), had warned that prolonged dollar pricing would expose marketers to foreign exchange risks, increase operating costs and ultimately push higher fuel prices onto consumers.

Many independent marketers also complained that the pricing structure forced them to purchase petroleum products from private depots at significantly higher prices after loading from the refinery became more expensive.

The refinery’s decision to resume naira sales is therefore expected to ease pressure on marketers by reducing their dependence on foreign exchange for product purchases while improving fuel availability across the country.

Although the new ₦1,215 per litre gantry price is higher than the refinery’s previous naira ex-depot price before the temporary suspension, analysts believe the return to naira transactions could help stabilise the downstream market and reduce price volatility.

Energy experts, however, noted that the gantry price represents only the wholesale cost of petrol. The final pump price paid by motorists will continue to depend on transportation costs, depot charges, distribution expenses, retail margins and other operational factors across different regions of Nigeria.

The development also supports the Federal Government’s broader objective of encouraging local currency transactions in the petroleum sector through the crude-for-naira policy, which is intended to reduce pressure on foreign exchange demand and strengthen domestic fuel supply.

With a refining capacity of 650,000 barrels of crude oil per day, the Dangote Petroleum Refinery remains Africa’s largest single-train refinery and is expected to play a central role in improving Nigeria’s energy security, reducing fuel imports and stabilising the domestic petroleum market.

Industry stakeholders are now watching closely to see whether the refinery’s return to naira transactions will translate into lower retail petrol prices and improved product availability in the coming days.

Dangote Refinery resumes naira petrol sales, fixes gantry price at ₦1,215 per litre