Dangote Refinery Cuts Petrol Price Again, Slashes PMS Ex-Depot Price by N200 in One Month

Dangote Refinery Cuts Petrol Price Again, Slashes PMS Ex-Depot Price by N200 in One Month

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 the cumulative reduction to N200 per litre within one month, while assuring Nigerians that further price moderation is likely if global crude oil prices remain favourable.

Dangote Petroleum Refinery has announced a fresh N50 per litre reduction in the ex-depot price of Premium Motor Spirit (PMS), bringing the cumulative price cut to N200 per litre within one month.

The latest reduction lowers the refinery's gantry price of petrol to N1,075 per litre, marking the fourth downward review since May 30, 2026.

The company also disclosed that it has reduced the ex-depot price of Automotive Gas Oil (AGO), commonly known as diesel, by N300 per litre and Jet A1 aviation fuel by N520 per litre over the same period.

In a statement issued on Thursday, the refinery said the successive price reductions reflect its commitment to ensuring Nigerians benefit from improving market conditions while sustaining domestic refining operations.

Dangote Refinery explained that petroleum product prices cannot immediately reflect daily fluctuations in international crude oil prices because crude oil is typically purchased weeks or months before refining.

According to the company, the petroleum products currently being supplied were refined from crude acquired when global oil prices were significantly higher.

It revealed that the average landed cost of crude processed was about 124.80 US dollars per barrel in May and 95.25 dollars per barrel in June, compared with the current international benchmark price of approximately 71.01 dollars per barrel.

The refinery further clarified that its crude procurement costs are determined using the Dated Brent pricing system, alongside market premiums, freight charges and other logistics costs, making the actual feedstock cost higher than the widely quoted Brent benchmark.

Despite the higher acquisition costs, the company said it deliberately absorbed a substantial portion of the additional expenses instead of passing them entirely to consumers in order to stabilise the domestic market and shield Nigerians from volatility in global energy prices.

It added that the pricing strategy has helped keep petroleum product prices in Nigeria below those of neighbouring countries, even after applicable taxes.

The company noted that as lower-cost crude cargoes gradually replace more expensive inventories, it has begun transferring the savings to consumers through phased reductions in pump prices.

It stated that the latest N50 reduction is part of a broader pricing strategy anchored on actual production economics and inventory costs rather than short-term movements in international crude oil markets.

Dangote Refinery also said its production capacity currently meets Nigeria's domestic fuel demand, strengthening energy security, reducing dependence on imports, conserving foreign exchange and promoting greater price stability.

The company expressed optimism that if international crude oil prices remain favourable and lower-cost feedstock continues to enter its refining cycle, Nigerians should expect further reductions in petroleum product prices.

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.