The Dangote Petroleum Refinery has reduced the ex-depot price of Premium Motor Spirit (PMS), popularly known as petrol, by ₦50 per litre to ₦1,075 per litre, marking its fourth price reduction in the past month.
The latest adjustment brings the refinery’s cumulative reduction in the ex-depot price of petrol to ₦200 per litre since May 30, 2026.
The company also announced significant cuts in the prices of other petroleum products during the same period. According to the refinery, the ex-depot price of Automotive Gas Oil (AGO), commonly known as diesel, has been reduced by ₦300 per litre, while Jet A1 aviation fuel now costs ₦520 less per litre than it did a month ago.
In a statement issued on Thursday, the refinery said the price adjustments reflect its commitment to passing on lower production costs to consumers while ensuring the long-term sustainability of its operations.
The company explained that domestic fuel prices cannot immediately reflect changes in global crude oil prices because crude oil is typically purchased several weeks or even months before it is refined.
According to the refinery, the products currently being supplied to the market were refined from crude purchased when international oil prices were significantly higher.
It disclosed that the average landed cost of crude processed was 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.
The refinery further clarified that its crude procurement costs are based on the Dated Brent pricing mechanism, alongside additional market premiums, freight and logistics expenses, rather than the ICE Brent benchmark price commonly reported in the media.
Despite the higher acquisition costs, the company said it absorbed a substantial portion of the additional expenses instead of passing the full burden to consumers.
According to the refinery, this pricing strategy has helped keep the cost of petroleum products in Nigeria below prices in neighbouring countries, even after taxes are taken into account.
“As lower-priced crude cargoes progressively enter our production cycle, we have begun systematically passing the benefits to the market through phased price reductions,” the statement said.
It added that the latest ₦50 per litre reduction is part of a broader pricing strategy anchored on actual production costs and inventory values rather than short-term fluctuations in international oil prices.
The refinery also stated that its current production capacity is sufficient to meet Nigeria’s domestic fuel requirements, a development it said would enhance energy security, reduce dependence on imported petroleum products, conserve foreign exchange and improve price stability.
Looking ahead, the company expressed optimism that if international crude oil prices remain favourable and lower-cost crude inventories continue to replace more expensive stock, Nigerians could see further reductions in the prices of petroleum products.
Dangote Refinery reaffirmed its commitment to supplying high-quality, internationally certified fuels at competitive prices while supporting Nigeria’s economic growth and the long-term development of the downstream oil and gas sector.
