Dangote Petroleum Refinery has reduced the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, by another ₦50 per litre, marking its fourth price cut in a month and signaling the potential for further reductions if global crude oil prices remain subdued.
The latest adjustment lowers the refinery’s ex-depot (gantry) price to ₦1,075 per litre, bringing the cumulative reduction in petrol prices to ₦200 per litre since May 30, 2026.
The company also disclosed that it has reduced the ex-depot price of Automotive Gas Oil (diesel) by ₦300 per litre and Jet A1 aviation fuel by ₦520 per litre over the same period, reflecting a broader easing in refined petroleum product prices.
In a statement issued on Thursday, Dangote Refinery said the successive price reductions underscore its commitment to passing production cost savings to consumers while maintaining the long-term sustainability of Nigeria’s largest refining operation.
The refinery explained that retail fuel prices do not immediately track movements in international crude oil markets because crude oil is typically purchased weeks or months before it is refined. As a result, products currently reaching the market are being produced from inventories acquired when global oil prices were significantly higher.
According to the company, the average landed cost of crude processed stood at approximately US$124.80 per barrel in May and US$95.25 per barrel in June, compared with the current international benchmark price of about US$71.01 per barrel.
Dangote Refinery also clarified that its feedstock costs are not determined solely by the widely quoted ICE Brent benchmark. Instead, crude purchases are priced using the Dated Brent benchmark alongside market premiums, freight charges and logistics costs, resulting in actual procurement costs that can differ substantially from headline market prices.
Despite the elevated cost of crude during the period, the refinery said it chose not to pass the full increase on to consumers, absorbing a significant share of the additional costs to support market stability and cushion households and businesses from volatility in global energy markets.
The company said this pricing strategy has helped keep Nigerian fuel prices below those in neighbouring countries, even after accounting for applicable taxes.
As lower-cost crude cargoes gradually replace higher-priced inventories in its production cycle, Dangote Refinery said it has begun transferring those savings to the domestic market through phased reductions in fuel prices.
“Today’s ₦50 per litre reduction is the fourth price cut in one month, bringing cumulative reductions to above ₦200 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 company said.
The refinery added that its domestic production capacity is now supplying volumes sufficient to meet Nigeria’s fuel demand, strengthening energy security, reducing reliance on imports, conserving foreign exchange and improving price stability for consumers and businesses.
Looking ahead, Dangote Refinery said Nigerians could expect further moderation in fuel prices if international crude oil prices remain favourable and lower-cost feedstock continues to replace more expensive inventories.
The company reaffirmed its commitment to supplying internationally certified petroleum products at competitive prices while supporting Nigeria’s economic growth and the long-term development of the downstream oil sector.