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The Dangote Petroleum Refinery has reduced the ex-depot price of Premium Motor Spirit (PMS) by another N50 per litre, bringing its cumulative petrol price reduction to N200 per litre within one month, while indicating that further cuts could follow if global crude oil prices remain favourable.
With the latest adjustment, the refinery’s gantry price has dropped to N1,075 per litre, marking the fourth reduction since May 30, 2026.
The company also disclosed that it has reduced the ex-depot price of Automotive Gas Oil (AGO), commonly known as diesel, by N300 per litre and Jet A1 aviation fuel by N520 per litre over the same period.
In a statement issued on Thursday, Dangote Refinery said the successive price cuts reflect its commitment to transferring lower production costs to consumers while sustaining domestic refining operations.
The refinery explained that petroleum product prices do not immediately track movements in the international crude oil market because crude oil is typically purchased weeks or months before refining.
According to the company, the products currently being supplied were refined from crude acquired when international prices were significantly higher.
It revealed that the average landed cost of crude processed stood at about $124.80 per barrel in May and $95.25 per barrel in June, compared with the current international benchmark price of approximately $71.01 per barrel.
Dangote Refinery also clarified that its crude procurement costs are not determined solely by the widely quoted ICE Brent benchmark, noting that purchases are made on a Dated Brent basis, with additional market premiums, freight and logistics costs that substantially increase actual feedstock costs.
Despite the elevated crude acquisition costs, the company said it deliberately absorbed a significant portion of the increase instead of passing it on to consumers, helping to stabilise the domestic market and cushion Nigerians from global oil price volatility.
It added that the pricing strategy has kept petroleum product prices in Nigeria below those in neighbouring countries, even after taxes.
“As lower-cost crude cargoes progressively replace higher-priced inventories, we have begun systematically passing the benefits to the market through phased price reductions,” the refinery said.
It added: “Today’s N50 per litre reduction is the fourth price cut in one month, bringing cumulative reductions on PMS to over N200 per litre. Our pricing decisions are based on actual production economics and inventory costs rather than short-term fluctuations in international oil markets.”
The refinery said its production capacity is sufficient to meet Nigeria’s domestic fuel demand, reducing reliance on imports, conserving foreign exchange, strengthening energy security and improving price stability.
It expressed optimism that Nigerians would enjoy further reductions in petrol and other refined petroleum product prices if international crude prices remain subdued and lower-cost crude continues to enter its refining cycle.
Dangote Refinery reaffirmed its commitment to supplying high-quality, internationally certified petroleum products at competitive prices while supporting Nigeria’s energy security and long-term economic growth.
