Dangote Petroleum Refinery has resumed the sale of Premium Motor Spirit (PMS), also known as petrol, in naira after temporarily switching to dollar-denominated transactions, ending days of uncertainty in Nigeria’s downstream petroleum sector.

The refinery announced a new ex-depot price of ₦1,215 per litre, representing an increase of ₦140 from its previous price of ₦1,075 per litre. Coastal loading prices also increased to ₦1,602,495 per metric tonne.

The return to naira transactions has been welcomed by petroleum marketers, who had raised concerns over the refinery’s brief decision to price petrol in United States dollars. However, the higher ex-depot price has already translated into increased pump prices across the country.

Earlier this month, the refinery suspended naira-based invoices and introduced a temporary price of $0.779 per litre, citing challenges associated with the Federal Government’s “Naira-for-Crude” initiative.

Industry sources said the refinery resorted to dollar pricing after local currency sales exceeded the volume of crude oil supplied under naira-denominated arrangements by the Nigerian National Petroleum Company Limited (NNPCL), forcing it to source crude from international markets using foreign exchange.

The move drew criticism from members of the Independent Petroleum Marketers Association of Nigeria (IPMAN), many of whom suspended purchases over concerns about exchange rate risks. The development also disrupted loading operations at depots and contributed to temporary supply uncertainty.

Energy analysts attributed the latest price increase to rising international crude oil prices, noting that Brent crude recently climbed above $93 per barrel amid geopolitical tensions in the Middle East and concerns over global supply.

They explained that although petrol is now being sold in naira, domestic fuel prices remain closely tied to international crude oil prices because crude remains the primary input for refining.

Following the latest adjustment, filling stations in Lagos, Abuja, Port Harcourt and several other cities have increased pump prices, with petrol now selling between ₦1,300 and ₦1,400 per litre in many outlets.

The increase has triggered concerns among transport operators, small business owners and consumers, with reports of transport fares rising across several major cities shortly after the announcement.

Analysts say the development underscores the realities of Nigeria’s deregulated petroleum market, where local refining alone does not guarantee lower fuel prices if crude oil is sourced at international market rates.

They argue that achieving long-term price stability will depend on consistent implementation of the Federal Government’s naira-for-crude policy, ensuring adequate crude supply to domestic refineries and improving Nigeria’s crude oil production through stronger action against oil theft and pipeline vandalism.

While the resumption of naira transactions has eased concerns over foreign exchange exposure for marketers, many Nigerians are expected to feel the impact of the latest increase as higher fuel costs continue to drive transportation and commodity prices nationwide.