Nigeria's Dangote Petroleum Refinery has reversed its decision to sell fuel products to the local market in US dollars, the company said in a statement on Thursday, bringing relief to consumers who feared this could lead to shortages of fuel.

Dangote on July 14 cited difficulties sourcing sufficient crude under the government's naira-for-crude programme for its decision to sell in dollars.

Under the naira-for-crude arrangement launched in October 2024, domestic refiners can purchase crude in the local currency, reducing pressure on the foreign exchange market.

Dangote said in a statement that it was selling petrol, the most consumed fuel in Nigeria, at 1,215 naira ($0.8895) a litre, "providing a measure of relief to marketers and consumers."

External sourcing of crude oil

Africa's largest refinery, with a capacity of up to 700,000 barrels per day, has emerged as a big winner during the Middle East conflict by ramping up exports, including of jet fuel.

Despite Nigeria being Africa's largest oil producer, the Dangote refinery often struggles to get adequate crude locally, forcing it to buy cargoes from as far away as the United States and Brazil.