Dangote Petroleum Refinery has announced that all payments for Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), and Aviation Turbine Kerosene (ATK) will now be made in U.S. dollars.
The new policy, which takes immediate effect, applies to both gantry and coastal sales of petroleum products.
Industry sources said the decision was prompted by the refinery’s rising foreign exchange exposure due to its crude oil procurement structure and continued volatility in Nigeria’s forex market.
According to a senior industry source, the refinery now receives a larger share of its crude oil from the Nigerian National Petroleum Company Limited (NNPCL) under dollar-denominated arrangements, while many of its refined products have continued to be sold in naira.
The source explained that the imbalance between dollar-based crude purchases and naira-denominated sales had increased exchange rate risks, making the switch to dollar payments necessary.
“The decision takes effect immediately. All PMS, AGO and ATK sales, both gantry and coastal, are now dollar-based,” the source said.
It was also gathered that marketers lifting fuel from the refinery have been notified of the new payment policy.
Another official said persistent fluctuations in global crude oil prices and uncertainty in Nigeria’s foreign exchange market also influenced the decision.
The official added that the refinery now receives fewer crude cargoes under the naira-for-crude arrangement than those priced in dollars.
“While we require more than 15 cargoes of crude monthly for our operations, the NNPCL is struggling to supply three cargoes in naira under the naira-for-crude arrangement,” the source said.
Analysts believe the move could affect fuel prices, distribution costs, and demand for foreign exchange, given Dangote Refinery’s position as one of Nigeria’s largest suppliers of refined petroleum products.
