By Ukumbi Afrika Lagos Dangote Petroleum Refinery has reversed its decision to sell fuel to Nigeria's domestic market in U.S. dollars, opting once again to price its products in naira, a move expected to ease concerns over fuel availability and pricing.
The refinery announced on Thursday that it is now selling Premium Motor Spirit (petrol) at ₦1,215 per litre, offering relief to fuel marketers and consumers who feared that dollar-denominated sales could increase costs and trigger supply disruptions.
Earlier this month, Dangote had switched to U.S. dollar sales after citing difficulties in securing enough crude oil through the federal government's naira-for-crude programme. Introduced in October 2024, the initiative allows local refiners to purchase crude oil in naira instead of dollars, helping reduce pressure on Nigeria's foreign exchange market.
However, despite the policy, the refinery has continued to face challenges accessing sufficient domestic crude supplies. As a result, it has increasingly relied on imported crude from countries including the United States and Brazil to keep operations running.
With a refining capacity of 700,000 barrels per day, Dangote Refinery has become a major exporter of refined petroleum products, particularly jet fuel, benefiting from strong global demand during the recent Middle East conflict.
The refinery's decision to resume naira sales is expected to support stability in Nigeria's downstream petroleum sector while reinforcing the government's efforts to reduce reliance on foreign currency in domestic energy transactions.
Source: Reuters
Reporter: Tide Owolabi
Writer: Mac MacDonald Dzirutwe
Editing: Kirsten Donovan