Morganable business/economy
According to the notice, the gantry price of petrol rose from N1,075 per litre to N1,215 per litre, representing an increase of N140 or 13.02 per cent
kaNo —
The Dangote Petroleum Refinery has resumed the sale of Premium Motor Spirit (PMS), commonly known as petrol, in naira, bringing an end to its brief switch to dollar-denominated transactions that unsettled Nigeria’s downstream petroleum market.
The refinery, however, increased its ex-depot price by N140 per litre, raising fresh concerns over the potential impact on pump prices across the country.
The latest development comes barely one week after the 650,000 barrels-per-day facility suspended truck loading of petrol and introduced dollar pricing for refined products, a move that disrupted supply chains, constrained product availability and triggered a spike in depot prices nationwide.
The development was also independently confirmed by industry monitoring platform Petroleumprice.ng.
According to the notice, the gantry price of petrol rose from N1,075 per litre to N1,215 per litre, representing an increase of N140 or 13.02 per cent.
The communication, titled “PMS Price Change Communication,” indicated that the revised pricing took immediate effect.
“Please be advised that all unloaded gantry volumes will be subject to repricing at the new price, which is effective 22nd July 2026. Kindly proceed with placing your order,” the notice read.
It further urged customers to contact the refinery for clarification where necessary, signaling a full return to domestic transactions in the local currency.
The move marks a significant policy reversal after the refinery’s short-lived transition to dollar pricing, which had sparked anxiety among marketers and consumers alike.
The decision to denominate sales in dollars had raised fears of increased pressure on Nigeria’s already fragile foreign exchange market.
Chief Executive Officer of Petroleumprice.ng, Jeremiah Olatide, confirmed the development, stating that customers had been duly notified of the resumption of gantry operations under the revised naira pricing structure.
“Yes, the refinery has returned to pricing its product in naira,” he said.
The move forced many marketers to turn to private depots, where prices surged sharply due to tightening supply.
During the period of disruption, the average ex-depot price of petrol at private depots reportedly climbed from about N1,075 per litre to approximately N1,275 per litre-an increase of N200 or about 18.6 per cent.
Independent petroleum marketers had also suspended product loading from the refinery during the dollar pricing regime, citing difficulties in accessing the foreign exchange required to complete transactions.
Industry stakeholders warned at the time that the policy could significantly increase demand for foreign exchange, weaken the naira, and ultimately drive up petrol prices across the country.
Estimates suggested that, based on Nigeria’s daily petrol consumption of about 50 million litres, marketers would require approximately $40m daily, translating to over $14bn annually to sustain purchases under a dollar-based regime.
Dangote Refinery Defends Shift To Dollar
The refinery had defended its temporary shift to dollar pricing, attributing the move to challenges in sourcing crude oil under the Federal Government’s naira-for-crude initiative.
It explained that it had increasingly relied on international crude supplies purchased in dollars, necessitating a corresponding adjustment in its pricing model.
Under the now-suspended dollar template, petrol was sold at $0.779 per litre, Automotive Gas Oil (diesel) at $1.087 per litre, and Jet A1 aviation fuel at $0.942 per litre.
A senior regulatory official familiar with the development noted that the refinery’s decision did not violate provisions of the Petroleum Industry Act.
“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 perhaps he reached a breaking point and had to recover costs,” the official explained.
FG Intervenes, Promoting Renewed Engagement
Following widespread concerns from marketers and other stakeholders, the Federal Government intervened, prompting renewed engagement with the refinery.
The latest notice from the Dangote facility confirms that local transactions have now reverted to naira, although the revised ex-depot price of N1,215 per litre remains slightly below the N1,275 per litre quoted by fuel importers.
Market analysts say the return to naira transactions is expected to ease supply bottlenecks and restore stability in product distribution, which had been disrupted during the week-long suspension of operations.
However, they cautioned that the higher ex-depot price could still translate into increased depot and retail pump prices if not moderated by competitive forces or favourable global oil market trends.
Already, petrol prices rose to about N1,300 per litre in Lagos and several other parts of the country on Wednesday, reflecting ongoing volatility in the market.
The increase coincided with rising global oil prices, which hovered around $94 per barrel amid renewed geopolitical tensions in the Middle East.
Industry operators expressed cautious optimism that ongoing discussions between the Dangote Group and the Federal Government over the naira-for-crude arrangement could yield a more sustainable framework for crude supply and product pricing.
They argued that a stable supply of crude in naira would help reduce exposure to foreign exchange fluctuations and support more predictable pricing in the domestic market.
Oil Firms Pledge Extra $23.8m In Fierce Bid Contests
Meanwhile, developments in Nigeria’s upstream oil sector have also intensified competition among operators seeking to secure valuable oil and gas assets.
Analysis of the Commercial Bid Conference proceedings revealed that tie-breaker contests were recorded for multiple oil blocks, including PPL 2A29, PPL 2A39, PPL 2A40, PPL 2A42, PPL 2A43, and PPL 2A51.
Under the commission’s licensing framework, companies with identical aggregate scores are required to submit fresh signature bonus offers in a tie-breaker round.
The bidder with the highest additional offer emerges as the preferred winner, while others are ranked accordingly.
Industry observers noted that the aggressive bidding reflects renewed investor interest in Nigeria’s oil and gas sector, despite ongoing challenges related to regulatory uncertainty, foreign exchange constraints and security concerns.
As the downstream and upstream segments continue to evolve, stakeholders say policy consistency and effective collaboration between government and industry players will be critical to ensuring stability, attracting investment and safeguarding energy security in Africa’s largest oil-producing nation.
