Dangote Refinery Resumes Dollar Sales for Petrol, Diesel and Aviation Fuel Amid Forex Pressure
By Ibrahim Yaro
Dangote Petroleum Refinery has resumed the sale of Premium Motor Spirit (PMS), commonly known as petrol, as well as Automotive Gas Oil (AGO) and Aviation Turbine Kerosene (ATK), in U.S. dollars.
The new pricing policy, which took effect immediately, applies to both gantry and coastal product sales, according to industry sources familiar with the refinery’s operations.
Sources said the decision was prompted by the refinery’s rising foreign exchange exposure, driven by its crude oil procurement structure and continued volatility in the foreign exchange market.
A senior industry source disclosed that the refinery is now receiving a larger share of its crude oil supplies from the Nigerian National Petroleum Company Limited (NNPCL) under dollar-denominated arrangements, while a significant portion of its refined petroleum products had continued to be sold in naira.
According to the source, the imbalance between dollar-based crude purchases and naira-denominated product sales had exposed the refinery to considerable exchange rate risks, making the shift to dollar-based sales necessary.
Industry analysts say the move is expected to have implications for petroleum marketers and large commercial buyers, particularly those sourcing products directly from the refinery, as transactions will now require access to foreign currency.
The development comes amid ongoing efforts by operators in Nigeria’s downstream petroleum sector to manage the impact of exchange rate fluctuations and rising costs associated with crude oil procurement.
Dangote Refinery has not yet issued an official statement explaining the policy change or indicating how long the dollar-denominated sales arrangement will remain in place.