Dangote Petroleum Refinery has announced a fresh reduction in the ex-depot price of Premium Motor Spirit (PMS), cutting the price by N50 per litre in its fourth downward review within one month.
The latest adjustment brings the refinery’s gantry price to N1,075 per litre, with cumulative petrol price reductions now exceeding N200 per litre since May 30, 2026.
According to the company, the decision is part of its commitment to ensuring Nigerians benefit from lower production costs while maintaining sustainable refining operations.
The refinery also disclosed that it has reduced the ex-depot price of Automotive Gas Oil (AGO), popularly known as diesel, by N300 per litre, while Jet A1 aviation fuel has been reduced by N520 per litre over the same period.
In a statement issued on Thursday, the company explained that fuel prices cannot instantly reflect fluctuations in international crude oil prices because crude oil is purchased weeks or months before it is refined.
It noted that the petroleum products currently being supplied were produced from crude acquired when global oil prices were significantly higher.
Dangote Refinery said the average landed cost of crude processed stood at $124.80 per barrel in May and $95.25 per barrel in June, compared with the current international benchmark of around $71.01 per barrel.
The company clarified that its crude procurement costs are not based solely on the ICE Brent benchmark widely reported in the media.
Rather, it said purchases are made on a Dated Brent basis, with additional market premiums, freight charges and logistics costs, making the actual production cost considerably higher than the benchmark price.
Despite those costs, the refinery said it chose to absorb a substantial portion of the burden instead of passing it entirely to consumers, helping to stabilise domestic fuel prices and cushion Nigerians from volatility in the global oil market.
The company added that this pricing strategy has enabled Nigeria to maintain lower fuel prices than neighbouring countries, even after taxes.
It explained that as lower-cost crude gradually enters its refining cycle, the resulting savings are now being passed on to consumers through phased reductions in petrol prices.
“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 refinery said.
It added that its production capacity is currently sufficient to meet Nigeria’s domestic fuel demand, strengthening energy security, reducing dependence on fuel imports, conserving foreign exchange and improving price stability.
The refinery said further reductions in petrol prices remain possible if international crude oil prices stay favourable and lower-cost crude continues replacing the more expensive inventory currently being refined.
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.
Many Nigerians have harshly criticised the company for not bringing down the prices of its products after the significant crash in the prices of crude oil globally.
They argued that it was not showing such reluctance when there were increases in crude oil prices.
