By Francis Ajuonuma
Dangote Petroleum Refinery has announced another reduction in the ex-depot price of Premium Motor Spirit (PMS), lowering it by ₦50 per litre to ₦1,075 per litre, the fourth downward review in one month, as the company signalled the prospect of further price reductions if global crude oil prices remain favourable.
The latest adjustment brings the cumulative reduction in the refinery’s ex-depot petrol price to ₦200 per litre since May 30, 2026, underscoring what the company described as its commitment to transferring production cost savings to consumers while maintaining the sustainability of domestic refining operations.
Over the same period, Dangote Refinery also reduced the ex-depot price of Automotive Gas Oil (AGO) by ₦300 per litre and Jet A1 aviation fuel by ₦520 per litre.
In a statement issued on Thursday, the refinery explained that petroleum product prices cannot immediately reflect fluctuations in international crude oil prices because crude oil is purchased weeks, and sometimes months, before refining.
According to the company, the products currently being supplied to the market were refined from crude inventories acquired when global oil prices were significantly higher than they are today.
It disclosed that the average landed cost of crude processed stood at approximately $124.80 per barrel in May and $95.25 per barrel in June, compared with the prevailing international benchmark price of about $71.01 per barrel.
The refinery further clarified that its crude procurement costs are determined by the Dated Brent pricing mechanism, together with applicable market premiums, freight charges and logistics costs, rather than the headline Brent crude price commonly quoted in the media.
Despite the higher acquisition costs, the company said it deliberately absorbed a substantial portion of the additional expenses instead of passing the full burden to consumers.
“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 refinery stated.
Dangote Refinery noted that its pricing strategy has helped keep petroleum product prices in Nigeria below those obtainable in neighbouring countries, even after taxes are taken into account.
The company explained that as lower-priced crude cargoes gradually replace earlier, more expensive inventories, the benefits are being systematically passed on to consumers through phased reductions in pump prices.
“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,” the statement added.
