Dangote Refinery Switches to Dollar Pricing, Fuel Depots See Sudden Price Hike

Nigeria's fuel market just got a jolt: the Dangote Petroleum Refinery, a major player, has abruptly switched to pricing its petrol, diesel, and aviation fuel in U.S. dollars, effectively ending naira-based transactions that began less than two years ago. This big shift, which took effect on July 13, 2026, has immediately sent ex-depot price soaring by as much as N113 per litre for petrol, sparking worries about a new wave of pump price hikes across the country. The move comes as the refinery grapples with a 'currency mismatch' – it's increasingly buying crude oil in dollars, especially from the Nigerian National Petroleum Company Limited (NNPCL), but was often selling its refined products in naira, leading to significant foreign exchange exposure. This policy reversal also coincides with a surge in global crude oil prices, with Brent crude climbing above $80 per barrel due to escalating geopolitical tensions in the Middle East, particularly around the Strait of Hormuz. This double whammy of dollarized local pricing and higher international oil costs is putting immense pressure on Nigeria's deregulated downstream petroleum sector. For everyday Nigerians, this means more pain at the pump, feeding into an already challenging inflation environment where fuel costs directly impact transportation and basic goods. The government's 2023 fuel subsidy removal has already exposed consumers to market fluctuations, and this latest development from Dangote will further test their resilience. Observers are now watching closely to see how the NNPCL and other petroleum marketers respond, and whether this leads to further instability in the cost of living or prompts new interventions from authorities.