Dangote returns to naira sales but Nigerians wake up to ₦140 petrol price hike

• Dangote Refinery has resumed selling petrol in naira after suspending its dollar pricing system.

• The refinery increased its ex-depot petrol price from ₦1,075 to ₦1,215 per litre.

• The new price took immediate effect, with pending gantry orders to be repriced.

• The increase could lead to fresh pump price hikes despite the return to naira transactions.

Just when many Nigerians thought the worst was over, another petrol price increase has landed.

Dangote Petroleum Refinery has officially resumed selling Premium Motor Spirit (PMS), better known as petrol, in naira after briefly switching to dollar payments. But the return comes with a painful twist, the refinery has raised its ex-depot price by ₦140 per litre.

The new price means marketers will now buy petrol at ₦1,215 per litre, up from ₦1,075, an increase of about 13%.

A notice sent to marketers by the refinery's commercial department confirmed that the new price took effect immediately.

It read: "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.

"Should you require any further clarification, please do not hesitate to contact us."

The refinery also raised its coastal loading price from ₦1,441,575 per metric tonne to ₦1,602,495 per metric tonne.

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Last week, Dangote Refinery suspended petrol loading and shocked the downstream sector by asking marketers to pay in dollars instead of naira.

The move came after the refinery said it was no longer getting enough crude oil through the Federal Government's naira-for-crude arrangement and had to source additional crude from the international market using dollars.

That decision immediately caused panic in the fuel market.

Many independent marketers stopped buying from the refinery because sourcing foreign exchange for every petrol purchase became almost impossible. As a result, marketers turned to private depots, where ex-depot prices jumped to around ₦1,275 per litre, tightening supply across the country.

Industry players also warned that keeping petrol sales in dollars would increase pressure on Nigeria's foreign exchange market.

Based on the country's estimated daily petrol consumption of about 50 million litres, marketers were expected to need roughly $40 million every day, or more than $14 billion annually, to continue buying fuel under the dollar payment system.

A senior regulatory official had earlier defended the refinery's decision, saying it did not violate the Petroleum Industry Act.

The official said:

"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 maybe he has got to a breaking point. So he has to do stuff to recover costs. And that's why he wants to share that burden with off-takers."

Following complaints from petroleum marketers and concerns over the pressure the policy would put on the naira, the Federal Government stepped into discussions with Dangote Refinery.

Those talks appear to have resulted in the refinery returning to naira transactions, although negotiations over the future of the naira-for-crude arrangement are still ongoing.

According to Petroleumprice.ng, the refinery has, for now, suspended its dollar pricing and resumed selling petrol in naira.

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While the return to naira payments is expected to restore normal fuel loading and ease supply challenges seen over the past week, the higher ex-depot price could still translate into more expensive fuel at filling stations.

Already, petrol was reportedly selling for as much as ₦1,300 per litre in parts of Lagos and other states on Wednesday, with international crude oil prices remaining elevated amid renewed tensions in the Middle East.

Unless competition among marketers or a drop in global crude oil prices brings some relief, Nigerians may have to brace for another round of higher pump prices.