Dangote refinery’s dollar fuel sales backed by regulators
The Dangote Petroleum Refinery’s decision to sell fuel in dollars instead of naira has been confirmed as compliant with the Petroleum Industry Act by sector regulators. Senior officials say the refinery is allowed to recover costs in the currency in which it purchases crude oil, especially given current market challenges. Aliko Dangote and his company have faced difficulties sourcing crude locally and have incurred losses due to delayed dollar allocations. The move has drawn criticism from marketers and industry stakeholders who warn of broader economic impacts.
TLDR
- Regulators say the Dangote Petroleum Refinery is permitted by the Petroleum Industry Act to sell fuel in dollars if it incurs costs in dollars.
- The refinery announced it would begin quoting ex-depot prices for petrol, diesel, and aviation fuel in dollars for gantry and coastal transactions.
- A message to marketers referenced an earlier email on the 9th of July, 2026, stating that naira-based payment instructions are now invalid.
- Marketers and industry groups have criticised the move, warning it could worsen foreign exchange pressures and destabilise the market.
- The refinery cites insufficient crude supply from the NNPC and increased costs due to Middle East tensions as reasons for the change.
