Petrol prices at depots across Nigeria have risen sharply after marketers adjusted their rates following the decision by Dangote Petroleum Refinery to stop selling refined petroleum products in naira and switch to U.S. dollar transactions.
The increase, which took effect on Tuesday, comes barely a day after the refinery introduced a new dollar-based pricing template for petrol, diesel and aviation fuel.
Although depot operators have not officially blamed the price hike on the policy, industry observers say the refinery’s decision has added fresh pressure to the downstream petroleum market.
Data from PetroleumPriceNG showed that several depots increased their ex-depot prices by more than nine per cent. Optima raised its Premium Motor Spirit (PMS) price to N1,141 per litre, Matrix Warri increased its price to N1,230 per litre, AITEO to N1,121 per litre, and Rainoil Delta to N1,170 per litre.
The new prices are significantly higher than the N1,076 per litre gantry price previously announced by Dangote Refinery before transportation and distribution costs.
On Monday, Dangote Refinery adopted a dollar-denominated pricing system, fixing the ex-depot price of petrol at $0.779 per litre, diesel at $1.087 per litre, and aviation fuel at $0.942 per litre. The refinery also fixed the price of coastal petrol deliveries at $1,044.62 per metric tonne.
In a notice to customers, the refinery said, “Following our email of July 9, 2026, regarding the transition from naira to United States dollars (USD), please note that all issued naira coastal and gantry PFIs/Deal Recaps are now invalid, and no payments should be made against them.”
It added, “The applicable USD prices for each product, effective today, July 13, 2026, are provided below.”
The refinery explained that the new payment system does not apply to Liquefied Petroleum Gas (LPG), stating, “Also note that this transition to USD does not apply to LPG transactions.”
Industry sources said the move became necessary because the refinery now buys a larger share of its crude oil in dollars while a significant volume of its refined products had continued to be sold in naira, creating a foreign exchange mismatch.
One industry source said, “Dangote Refinery is receiving fewer naira-denominated crude cargoes from NNPCL than dollar-denominated cargoes, while a larger volume of its petroleum products has been sold in naira. 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 increase in depot prices has also been driven by rising global crude oil prices following renewed geopolitical tensions involving the United States and Iran around the Strait of Hormuz. Brent crude rose to $86.16 per barrel, while West Texas Intermediate traded at $79.76 per barrel and Murban crude reached $83.16 per barrel.
Commentators have warned that the combination of higher crude oil prices and the refinery’s new dollar-based sales framework could lead to another increase in retail petrol prices at filling stations, adding to transport costs and inflationary pressures already affecting households and businesses across the country.
