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Naira-for-Crude Deal Ends as Dangote Refinery Switches to Dollar Pricing for Petrol
The Dangote Petroleum Refinery has shifted to dollar-denominated transactions, fixing the ex-depot price of petrol at $0.779 per litre and unveiling new benchmarks for diesel and aviation fuel.
This marks the end of naira payments for refined products, a practice introduced under the naira-for-crude deal in October 2024.
The refinery said all naira-based invoices and deal recaps are now invalid.
Under the new pricing template, diesel is set at $1.087 per litre, aviation fuel at $0.942 per litre, while coastal deliveries of petrol are priced at $1,044.62 per metric tonne. Liquefied Petroleum Gas (LPG) transactions remain unaffected.
Officials explained that the move aligns product sales with the currency used to procure most of the refinery’s crude oil feedstock, much of which now comes from the NNPCL under dollar-denominated supply arrangements.
One source said, “The resulting currency mismatch, combined with volatility in international crude oil prices and continued exchange-rate uncertainty, made it necessary to migrate product sales to dollars.”
The decision is expected to reshape pricing dynamics in Nigeria’s deregulated downstream sector, where Dangote has become the largest supplier of refined products.
Marketers sourcing directly from the refinery will now base pump prices on the naira-dollar exchange rate, logistics, and regulatory charges.
The naira-for-crude policy was intended to ease FX demand and stabilize fuel prices, but implementation challenges have seen crude supplies revert to dollar-based transactions.
Industry stakeholders say the shift underscores Nigeria’s persistent foreign exchange pressures and raises questions about the future of the naira-for-crude initiative and its impact on domestic fuel pricing.
SOURCE: The PUNCH
