Dangote’s Dollar Pricing Pushes Fuel Up ₦100/L, Tests Nigeria’s FX Market
Dangote Petroleum Refinery’s decision to price petrol, diesel and aviation fuel in dollars is set to shift about $1.84 billion in monthly foreign exchange burden onto local marketers. This move could strain Nigeria’s FX market and expose consumers to more frequent price hikes. Industry estimates show marketers now need roughly $60.7 million per day to lift products from the refinery. Premium motor spirit alone accounts for $36.9 million daily at the new $0.779 per litre gantry price, driving depot prices up by about ₦100, to as high as ₦1,250 per litre. Economists warn that forcing marketers to source dollars could weaken the naira and push pump prices higher. They say the policy transfers FX risk from the refinery to downstream operators, who must factor exchange-rate volatility into their pricing. Experts advise strengthening foreign exchange management, diversifying crude and product sourcing, and ensuring a transparent link between crude supply arrangements and product pricing. They argue such steps are needed to stabilise fuel costs and support macroeconomic resilience.
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