Dangote Petroleum Refinery has resumed selling gasoline in naira just one week after switching to US dollar pricing, reversing a decision that unsettled Nigeria’s fuel market. The refinery set its new gantry price at approximately $0.89 per liter, up from the previous rate, to reflect changes in market conditions. Dangote had introduced dollar-denominated sales to shield itself from currency mismatches, since it purchases crude oil in dollars while selling refined products locally. However, the move rattled fuel suppliers and triggered price swings across the downstream market, prompting the reversal. The episode highlights the ongoing tension between Dangote’s need to manage foreign-exchange exposure and the practical realities of Nigeria’s naira-based retail fuel market, which remains highly sensitive to sudden pricing shifts from the country’s dominant refiner.
Bloomberg