Dangote Petroleum Refinery has announced another N50 per litre cut in the ex-depot price of Premium Motor Spirit (PMS), its fourth reduction in a month.
The current reduction brings the total PMS price reduction to N200 per litre since May 30, 2026, dropping the gantry price to N1,075 per litre.
The refinery also reduced Automotive Gas Oil (AGO) by N300 per litre and Jet A1 aviation fuel by N520 per litre.
Confirming this in a statement on Thursday, the company said the cuts show its commitment to passing lower production costs to Nigerians while keeping domestic refining sustainable.
According to the company, petrol prices cannot follow daily crude oil market changes because crude is bought weeks or months before processing. It noted that current products are from crude inventories bought at much higher international prices.
It disclosed that 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 of about US$71.01 per barrel.
It also clarified that its crude procurement costs are not based solely on the headline ICE Brent benchmark commonly quoted in the media.
The company said crude is purchased on a Dated Brent basis together with applicable market premiums, freight and logistics costs, resulting in actual feedstock costs that differ materially from benchmark prices.
Dangote Refinery said it deliberately refrained from transferring the full impact to consumers, choosing instead to absorb a significant portion of the additional costs in order to support market stability and cushion Nigerians from the volatility in global energy markets.
It noted that this pricing approach has helped to keep petroleum product prices in Nigeria below those prevailing in neighbouring countries, even after accounting for applicable taxes. It added that as lower priced crude cargoes progressively 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,” it said.
It added: “Nigeria today benefits from the stabilising 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”.
