Dangote Refinery Further Lowers Fuel Price To N1,075.
Dangote Petroleum Refinery has announced another reduction in the ex-depot price of Premium Motor Spirit (PMS), lowering the gantry price by ₦50 per litre to ₦1,075 per litre, its fourth price cut within a month.
The latest reduction brings the cumulative decrease in the refinery’s PMS ex-depot price to ₦200 per litre since May 30, 2026.
Over the same period, the refinery also reduced the ex-depot price of Automotive Gas Oil (AGO), commonly known as diesel, by ₦300 per litre, while the price of Jet A1 aviation fuel has fallen by ₦520 per litre.
The company said the successive reductions reflect its commitment to passing lower production costs to consumers while maintaining the long-term sustainability of domestic refining operations.
In a statement issued on Thursday, the refinery explained that petroleum product pricing cannot mirror daily movements in international crude oil markets because crude oil is purchased weeks, and sometimes months, before it is processed.
According to the refinery, the petroleum products currently being supplied to the market are being produced from crude inventories acquired during periods of substantially higher 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.
The refinery also clarified that its crude procurement costs are not based solely on the ICE Brent benchmark commonly quoted in the media.
Rather, it 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.
Despite the higher crude acquisition costs, Dangote Refinery said it deliberately absorbed a significant portion of the additional expenses instead of transferring the full impact to consumers.
The company said the pricing approach has helped keep petroleum product prices in Nigeria below those in neighbouring countries, even after accounting for applicable taxes.
“As lower-priced crude cargoes progressively enter our production cycle, we have begun systematically passing the benefits to the market through phased price reductions,” the refinery said.
It added: “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 also said its current production volumes are sufficient to meet Nigeria’s domestic fuel demand, helping to strengthen energy security, reduce dependence on imports, conserve foreign exchange and provide greater price stability.
Dangote Refinery expressed confidence that if international crude prices remain favourable and lower-cost feedstock continues to replace higher-priced inventories, Nigerians should expect further moderation 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 petroleum sector.
