By Peace Udugba
Dangote Petroleum Refinery has announced another reduction in the ex-depot price of Premium Motor Spirit (PMS), cutting the price by N50 per litre and bringing the cumulative reduction to N200 per litre within one month.
The latest adjustment, the fourth since May 30, 2026, reduces the refinery’s ex-depot (gantry) price of petrol to N1,075 per litre. During the same period, the company also reduced the ex-depot price of Automotive Gas Oil (AGO) by N300 per litre and Jet A1 aviation fuel by N520 per litre.
The refinery said the successive price reductions reflect its commitment to ensuring Nigerians benefit from improved market conditions while sustaining domestic refining operations.
In a statement issued on Thursday, the company explained that petroleum product prices cannot immediately reflect daily fluctuations in international crude oil prices because crude oil is purchased several weeks or months before it is refined.
According to the refinery, the petroleum products currently being supplied were produced from crude inventories acquired when global oil prices were significantly higher.
It disclosed 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 of approximately $71.01 per barrel.
The company also clarified that its crude procurement costs are not determined solely by the widely quoted ICE Brent benchmark. Instead, it purchases crude on a Dated Brent basis, with additional costs such as market premiums, freight and logistics, resulting in actual feedstock costs that are considerably higher than benchmark prices.
Despite the sharp increase in crude acquisition costs during the period, the refinery said it deliberately absorbed a significant portion of the additional expenses instead of transferring the full burden to consumers.
According to the company, the strategy has helped keep petroleum product prices in Nigeria below those of neighbouring countries, even after taxes are taken into account.
It added that as lower-cost crude cargoes gradually replace earlier high-priced inventories, the benefits are being passed on to consumers through phased reductions in pump prices.
“Today’s N50 per litre reduction is the fourth price cut in one month, bringing cumulative reductions to over N200 per litre on PMS. This approach ensures that pricing decisions are based on actual production economics and inventory costs rather than short-term fluctuations in international oil markets,” the statement said.
The refinery noted that its production capacity is currently sufficient to meet Nigeria’s domestic fuel demand, helping to strengthen energy security, reduce dependence on imported petroleum products, conserve foreign exchange and provide greater price stability for consumers and businesses.
It expressed optimism that if global crude oil prices remain favourable and lower-cost crude continues to replace existing inventories, Nigerians should expect further reductions in petroleum product prices.
Dangote Petroleum Refinery reaffirmed 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 downstream petroleum sector.
