The 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 its cumulative reduction to N200 per litre within one month.
The latest adjustment, the fourth since May 30, 2026, lowers the refinery’s gantry price 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 latest price cuts reflect its commitment to ensuring Nigerians benefit from lower production costs while sustaining domestic refining operations.
In a statement issued on Thursday, the company explained that fuel prices cannot immediately reflect fluctuations in international crude oil prices because crude oil is purchased several weeks or months before it is refined. It noted that products currently being supplied were produced from crude inventories acquired when global oil prices were significantly higher.
According to the refinery, the average landed cost of crude processed stood at approximately $124.80 per barrel in May and $95.25 per barrel in June, compared to the current international benchmark of about $71.01 per barrel.
The company further clarified that its crude procurement costs are based on the Dated Brent pricing mechanism, which includes market premiums, freight and logistics expenses, making its actual feedstock costs higher than the benchmark Brent price widely reported in the media.
Despite the higher acquisition costs, Dangote Refinery said it deliberately absorbed a substantial portion of the increased expenses rather than transferring them to consumers, in a bid to stabilise the domestic market and shield Nigerians from volatility in global energy prices.
It added that this pricing strategy has helped keep fuel prices in Nigeria lower than those in neighbouring countries, even after applicable taxes.
The refinery stated that as lower-cost crude cargoes gradually replace earlier high-priced inventories, it has begun passing the benefits 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 anchored on actual production economics and inventory costs rather than short-term fluctuations in international oil markets,” the company said.
It added that Nigeria is increasingly benefiting from the stabilising effect of domestic refining, noting that the refinery currently produces enough petroleum products to meet national demand, reduce dependence on imports, conserve foreign exchange and enhance energy security.
Dangote Refinery expressed optimism that if international crude oil prices remain favourable and lower-cost feedstock continues to enter its production cycle, Nigerians should expect further reductions in petroleum product prices.
The company 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 oil sector.
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