Dangote Petroleum Refinery has switched all sales of Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), and Aviation Turbine Kerosene (ATK) to U.S. dollar payments, with the new policy taking effect immediately for both gantry and coastal transactions.
Petroleumprice.ng gathered from a senior industry source familiar with the refinery's operations that the decision follows growing market instability, increased exposure to exchange rate fluctuations, and changes in the refinery's crude supply arrangements.
According to the source, Dangote Refinery is now receiving a larger proportion of its crude oil cargoes from the Nigerian National Petroleum Company Limited (NNPCL) under dollar denominated supply arrangements, while a significant share of its refined petroleum products has continued to be sold in naira.
The source said the imbalance between dollar based crude procurement and naira product sales has increased the refinery's foreign exchange exposure, prompting management to align its sales currency with the currency in which much of its crude is now purchased.
"The decision takes effect immediately. All PMS, AGO and ATK sales, both gantry and coastal, are now dollar based," the source told Petroleumprice.ng.
The source added that persistent volatility in international crude oil prices and continued exchange rate uncertainty also influenced the decision.
"Dangote Refinery is receiving fewer naira denominated crude cargoes from NNPCL compared with dollar denominated cargoes, while a larger volume of its petroleum products has been sold in naira. The resulting currency mismatch, combined with market instability, made it necessary to migrate product sales to dollars," the source explained.
The new policy has already begun to ripple through the downstream market, with depot owners and fuel marketers responding by reviewing prices upward across major supply locations. The adjustments mark the first market response to Dangote Refinery's transition to dollar denominated sales, signalling a fresh pricing trend that industry participants will continue to monitor in the coming days.