File: Dangote Refinery
Marketers have kicked at the new Dangote fuel Dollars pricing for the purpose of suspected pressure on the economy as an aftereffect.
Independent petroleum marketers and energy experts have rejected the Dangote Petroleum Refinery’s decision to introduce United States dollar-denominated pricing for petroleum products, warning that the move could worsen foreign exchange pressures and trigger fresh instability in the downstream sector.
The Petroleum Products Retail Outlets Owners Association of Nigeria faulted the development, saying dollar-based fuel transactions could gradually push the country towards a dollarised economy and undermine efforts to stabilise the petroleum market.
The Independent Petroleum Marketers Association of Nigeria, on its part, urged President Bola Tinubu to urgently intervene and ensure the continuation of the crude-for-naira arrangement, warning that tying fuel prices to the dollar could increase pump price volatility.
Energy experts, however, offered divergent views on the policy, with some arguing that the refinery’s decision was a commercial response to foreign exchange risks associated with crude procurement and refinery operations, while others insisted that domestic fuel sales should remain anchored on the naira as Nigeria’s legal tender.
The controversy followed Dangote Petroleum Refinery’s decision to quote ex-depot prices for Premium Motor Spirit, Automotive Gas Oil and aviation fuel in United States dollars for gantry and coastal transactions.
In a mail to marketers on Monday, it said, “Following our email on the 9th of July, 2026, regarding the transition from Naira to United States Dollars, please note that all issued Naira Coastal and Gantry PFIs/Deal Recaps are now invalid, and no payments should be made against them.”
Following the announcement, depot owners across major petroleum hubs began adjusting their loading prices as marketers moved to factor in possible changes in replacement costs.
Fuel pricing according to petroleumprice.ng showed that petrol prices increased by as much as N113 per litre at some depots, while diesel prices rose by up to N150 per litre in some locations.
The development has renewed debate over Nigeria’s petroleum deregulation policy, with stakeholders divided over whether the dollar pricing model represents a legitimate business strategy to manage foreign exchange risks or a move that could worsen pressure on domestic consumers.
The National President of PETROAN, Billy Gillis-Harry, described the decision as a development that could gradually push Nigeria towards a dollarised economy if not properly managed.
Speaking with one of our correspondents, Gillis-Harry faulted the decision by the Dangote Petroleum Refinery to sell petrol in United States dollars, warning that the move could effectively dollarise the Nigerian economy and further destabilise the downstream petroleum sector.
While acknowledging Dangote Refinery’s contribution to Nigeria’s energy security, he argued that commercial decisions by a major market player must align with national economic objectives.
“This will turn Nigeria into a dollarised economy. That is the meaning, and that’s why we are saying that some of these decisions, in as much as it’s a private company that has the right to regulate the economy to do what it wants, we still have regulations, not just of price, but of values that should be able to stabilise our economy,” he said.
Gillis-Harry added, “At the end of the day, I think everything has been interrogated properly, and all the stakeholders will then take a decision. Because we cannot have one player, that is the refiner waking up today to change price; tomorrow it increases it; another day it does something else; and suddenly it wakes up and says everybody who had paid naira in his company is no longer valid.”
Gillis-Harry argued that marketers purchasing petrol in dollars would inevitably come under pressure to pass the burden to consumers. “It is like saying those who buy from Dangote in dollars should also sell in dollars to the masses. But we are not going to do that,” he said.
The PETROAN president stressed that the association would continue sourcing products from all available suppliers while urging the Nigerian National Petroleum Company Limited to revive the country’s refineries to promote competition.
“PETROAN will continue to patronise Dangote, patronise imported products, and keep encouraging NNPC to up their game, and make sure that the refineries are working. Because if the four refineries are working, we will not be talking about this at this time.
“We will be talking about what is the competitive value that drives down prices. But that’s not where we are. We just left having a meeting to determine what it is that needs to be done, and suddenly, another shock from the same source. Should everybody run out of business?” he queried.
The PETROAN boss lamented that marketers could now be forced to source scarce foreign exchange from banks to buy products. “To get the US dollar from Nigerian banks, how is that going to work? We have to source dollars? We’ll see how it goes,” he said.
Despite the concerns, Gillis-Harry expressed confidence that the issue would be resolved without disrupting fuel supply across the country.
“I know this will be resolved. I believe that it will be resolved. It will not lead to fuel scarcity. We cannot expect the worst for our country. We will always expect the best for our country. We had a war in the Gulf region. It affected us, but it did not in any way make us start queuing up for fuel, as it happened in some places.”
“So, we should be grateful to Dangote, but while we are grateful, we’ll continue to call on him to ensure that we have full stakeholder participation to give much more security than anything else,” he submitted.
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, also appealed to President Tinubu to intervene through the Presidential Committee on Petroleum and relevant government agencies.
Ukadike said the government needed to act quickly because the price of petroleum products was directly linked to crude oil prices and exchange rates.
He said, “My only response to this issue is to appeal to President Bola Tinubu that whatever the presidential committee on petroleum should do, especially the minister, should address this issue and help us cushion the ecosystem and bring stability in terms of products and pump price volatility.
“It is pertinent to note that the price of crude oil and foreign exchange determines the price at the pump. Once these factors are affected in any way, especially when they are increasing at the same time, it becomes bad news for Nigerians whose economy is domestically driven through petroleum products.”
The marketers’ spokesman argued that allowing more petroleum transactions to be tied to the dollar at a time when the country was managing foreign exchange pressures could worsen the situation.
According to him, the development could increase demand for scarce foreign currency and ultimately push pump prices higher. “The sale of fuel in dollars will ultimately affect prices at the pump. Exchange rate affects the price of petroleum products because some vessels and other processes involved in bringing in the products are paid for in dollars.
“It is calculated in dollars, so if there is any pressure on the dollar now because a few marketers are pursuing dollar exchange to buy petroleum products, it means this will affect the availability of dollars and lead to an increase.
“It will definitely impact the price of petrol. There are no two ways about it. Petrol prices in Nigeria are determined by two major things — crude oil prices in the international market and the dollar exchange rate,” Ukadike stated.
He urged the Federal Government to maintain the naira-for-crude arrangement introduced to support domestic refining, especially amid global uncertainties.
“The President should please ensure that the crude-to-naira deal is sustained during this period of crisis at the Strait of Hormuz. Marketers are appealing to the minister and the President to intervene and nip this menace in the bud.
“So much money will be spent ona few goods, which is not ideal and not the best for our country. We have not seen any document on that directive yet, but it is not a good environment for business at this period,” he added.
Already, private depot operators across Lagos, Port Harcourt and Warri after Dangote Refinery commenced dollar-based sales of Premium Motor Spirit, Automotive Gas Oil and aviation fuel.
Industry data showed that in Lagos, some depots increased petrol loading prices from about N1,090 per litre to N1,120 per litre, while diesel prices moved upward at several facilities.
In Port Harcourt, Matrix Depot reportedly raised petrol loading prices from N1,137 to N1,250 per litre, representing a N113 increase, while diesel rose from N1,500 to N1,650 per litre. In Warri, petrol prices also increased across several depots, with some operators adjusting prices by between N24 and N110 per litre.
Although Dangote Refinery has not announced a new petrol loading price following the dollar-based payment structure, market operators have started factoring the new pricing model into their replacement cost calculations. Amidst the price surge, energy experts offered different perspectives on the development.
While some argued that Dangote Refinery was protecting itself against foreign exchange risks because crude oil and other inputs are dollar-linked, others insisted that domestic transactions should remain tied to the naira.
A petroleum economist and Professor Emeritus, Wumi Iledare, said the development should be viewed within the realities of petroleum economics and deregulation.
He argued that the development should be viewed within the context of petroleum economics and market deregulation. Iledare said the refinery’s decision was not necessarily price fixing but rather a commercial response to currency risks.
According to him, Dangote Refinery is announcing the price at which it intends to sell its products, while market forces would determine whether buyers accept the price. He said, “Dangote refinery has not fixed the market price of petroleum products; it has announced the price at which it is prepared to sell its own output.
“In a deregulated market, a producer may publish its selling price. Whether that price becomes the market reference depends on competition, buyer response, alternative supply sources, and prevailing market conditions.
“Price fixing refers to anti-competitive coordination among competitors, not a refinery publishing its own ex-depot price. The relevant policy question is whether the market structure allows that price to be disciplined by competition.”
The petroleum economist explained that dollar pricing could be a strategy to manage foreign exchange exposure because crude oil and other refinery inputs were connected to global markets.
“The shift to dollar-denominated pricing is best understood as a response to foreign exchange exposure. If crude oil feedstock is procured substantially in dollars while refined products are sold in naira, the refinery bears currency mismatch risk.
“Aligning revenues with major cost obligations is therefore a standard commercial risk-management response. It should not automatically be interpreted as abnormal pricing behaviour,” he stated.
Iledare added that local refining capacity would improve supply security but would not completely shield Nigeria from international market forces.
“Domestic refining improves supply security, but it does not eliminate global price and currency exposure. Crude oil, catalysts, equipment, replacement parts, and financing remain linked to international markets,” he said.
He, however, stressed that regulators must ensure competition remains strong enough to protect consumers. “The role of NMDPRA is not to approve prices but to promote transparency, adequate supply, consumer protection and fair competition in the downstream market.
“Market leadership is not the same as market dominance, and dominance is not automatically abuse. The issue is whether competition is substantially impaired or market power is used to distort outcomes against consumers or competitors,” he added.
An energy professor at the University of Lagos, Dayo Ayoade, expressed concern over the development, arguing that domestic transactions in Nigeria should ordinarily be conducted in naira.
Ayoade said that while oil transactions globally were largely dollar-based, petroleum products sold domestically should align with Nigeria’s legal tender framework.
He said, “Clearly, the naira is the legal tender in Nigeria, and the Central Bank states that the naira is our domestic legal tender. Whether it is proper or illegal is a different thing.
“Normally, for domestic sales, we would assume that the naira should be the currency of choice, while for export or foreign sales, the United States dollar or any other currency could be the legal tender.”
He acknowledged that Dangote Refinery might be seeking protection from foreign exchange losses but questioned whether the move was appropriate considering the support the facility received from the Nigerian financial system.
“From Dangote refinery’s point of view, I consider what they are doing as an attempt to avoid foreign exchange losses and maybe also obtain stable pricing since they are buying NNPC crude in dollars.
“But how fair is that? The Central Bank of Nigeria provided a lot of foreign exchange support for the construction of this refinery, and the refinery has also enjoyed naira-denominated crude cargoes in the past. That history has to be considered,” he said.
Ayoade called on the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the Federal Competition and Consumer Protection Commission, and the CBN to examine the policy.
“The action may not be illegal on the face of it, but it is not proper. It requires NMDPRA, FCCPC, and the CBN to look very closely at the Dangote Refinery.
“It is a shame because the facility has been doing a good job for us and this country, and we do not want to discourage this type of enormous investment. But at the same time, regulators need to stand up and ask: What is the legal, economic and financial basis for this decision?” he stated.
The Chief Executive Officer of Petroleumprice.ng, Jeremiah Olatide, also urged the Federal Government to intervene, warning that dollarisation of domestic petroleum transactions could worsen the burden on Nigerians.
Olatide said, “The dollarisation of petroleum products at the gantry will not stand. The effect of the oil price spike is already a burden on Nigerians. The Federal Government should, as a matter of urgency, intervene and revisit the naira-for-crude agreement.
“Oil and its components are traded in dollars as there is no law that restricts Dangote from trading in dollars. However, domestic petroleum products must be handled in a way that protects consumers and sustains market stability.”
The latest controversy comes months after Dangote Refinery began reshaping Nigeria’s petroleum supply chain, reducing dependence on imported products and becoming the country’s dominant domestic fuel supplier.
However, the dollar pricing template has opened a fresh debate over how Nigeria balances private investment, market deregulation, foreign exchange realities, and consumer protection.
