Dangote Petroleum Refinery & Petrochemicals has once again reduced the ex-depot price of Premium Motor Spirit (PMS), marking its fourth price cut in a single month. The company says it is passing on lower production costs to consumers, despite still processing crude oil bought at much higher international prices.
The latest reduction of N50 per litre brings the total decrease in PMS ex-depot price to N200 per litre since May 30, 2026, lowering the gantry price to N1,075. Over the same period, the refinery has also cut the ex-depot price of Automotive Gas Oil (AGO) by N300 per litre and Jet A1 aviation fuel by N520 per litre.
The company says these successive cuts show its dedication to ensuring Nigerians benefit from favorable market developments, while maintaining the long-term health of domestic refining operations.
In a statement released on Thursday, the refinery explained that petroleum product pricing cannot mirror daily movements in international crude oil markets, because crude is purchased weeks or even months before it is processed. The products currently hitting the market come from crude inventories acquired during periods of significantly higher prices.
The refinery revealed that the average landed cost of crude processed was about US$124.80 per barrel in May and US$95.25 per barrel in June, compared to the current international benchmark of around US$71.01 per barrel.
The company also clarified that its crude procurement costs are not based solely on the headline ICE Brent benchmark commonly quoted in the media. Instead, crude is purchased on a Dated Brent basis, along with applicable market premiums, freight, and logistics costs, resulting in actual feedstock costs that differ materially from benchmark prices.
Despite the sharp increase in crude acquisition costs during this period, the refinery said it deliberately avoided transferring the full impact to consumers. Instead, it absorbed a significant portion of the additional costs to support market stability and shield Nigerians from the volatility in global energy markets.
The company noted that this pricing strategy has helped keep petroleum product prices in Nigeria below those in neighboring countries, even after accounting for applicable taxes. It added that as lower-priced crude cargoes gradually enter its production cycle, the refinery has begun systematically passing the benefits to the market through phased price reductions.
“Today’s N50 per litre reduction is the fourth price cut in one month, bringing cumulative reductions to above N200 per litre on PMS. This approach ensures that pricing decisions are anchored on actual production economics and inventory costs rather than short-term fluctuations in international oil markets,” the statement read. “Nigeria today benefits from the stabilizing role of domestic refining capacity. The Dangote Petroleum Refinery currently supplies volumes sufficient to meet national demand, helping to strengthen energy security, eliminate dependence on imports, conserve foreign exchange, and provide greater price stability for consumers and businesses.”
The company expressed confidence that if international crude prices remain favorable and lower-cost feedstock continues to replace higher-priced inventories, Nigerians should expect further moderation in petroleum product prices.
Dangote Petroleum Refinery reiterated its commitment to supplying high-quality, internationally certified petroleum products at competitive prices, while supporting Nigeria’s economic growth and the long-term development of the country’s downstream petroleum sector.
