Petrol prices have climbed by more than N100 per liter after the Dangote Petroleum Refinery switched the sale of refined products from naira to United States dollars, a move expected to reshape Nigeria’s downstream oil market.
The News Chronicle reports that marketers may now require about $1.84 billion every month to purchase petrol, diesel and aviation fuel from the refinery. Industry experts believe the new arrangement could increase demand for foreign exchange, tighten liquidity, and expose consumers to more frequent fuel price changes.
READ MORE: Dangote Refinery Switches Petrol Sales to Dollar Pricing Amid FX Pressures
Following the new pricing structure, petrol prices at depots have risen from around N1,137 to N1,250 per liter, while diesel prices have also increased sharply across several depots.
Analysts say the refinery’s decision reflects growing reliance on crude oil purchased in dollars, making it difficult to sustain naira-based transactions. They also warned that marketers now face the challenge of buying products in dollars while selling in naira, increasing their exposure to exchange rate risks.
Although experts describe the shift as consistent with a deregulated petroleum market, they insist stable foreign exchange supply and improved local crude availability will be crucial to preventing further pressure on fuel prices and inflation.
