Dangote Petroleum Refinery & Petrochemicals has announced another reduction of N50 per litre in the ex-depot (gantry) price of Premium Motor Spirit (PMS), commonly known as petrol.
The reduction brings the ex-depot price down from ₦1,125 per litre to ₦1,075 per litre.
This marks the refinery’s fourth price cut within one month, as the company said it continues to pass lower production costs on to consumers despite still processing crude oil purchased at significantly higher international prices.
The latest reduction brings the cumulative decrease in the refinery’s PMS ex-depot price to ₦200 per litre since May 30, 2026, lowering the gantry price to ₦1,075 per litre.
Over the same period, the refinery has also reduced the ex-depot price of Automotive Gas Oil (AGO), commonly known as diesel, by ₦300 per litre, and Jet A1 aviation fuel by ₦520 per litre.
The company said the successive price reductions demonstrate its commitment to ensuring Nigerians benefit from favourable market conditions while maintaining the long-term sustainability of domestic refining operations.
In a statement issued on Thursday, the refinery explained that petroleum product pricing cannot immediately reflect daily movements in international crude oil prices because crude oil is purchased weeks, and sometimes months, before it is refined.
According to the company, the petroleum products currently being supplied to the market are being refined from crude inventories acquired when international prices were significantly higher.
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 current international benchmark of about $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, crude oil is purchased on a Dated Brent basis, with additional market premiums, freight and logistics costs, resulting in actual feedstock costs that differ significantly from benchmark prices.
Despite the higher crude acquisition costs during the period, Dangote Refinery said it deliberately chose not to pass the full increase on to consumers, absorbing a substantial portion of the additional costs to support market stability and cushion Nigerians from volatility in the global energy market.
The company noted that this pricing strategy has helped keep petroleum product prices in Nigeria below those in neighbouring countries, even after accounting for applicable taxes.
It added that as lower-priced crude cargoes gradually enter its production cycle, the refinery has begun systematically passing the benefits on to consumers through phased price reductions.
“Today’s N50 per litre reduction is the fourth price cut in one month, bringing cumulative reductions to over ₦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 statement said.
It added: “Nigeria today benefits from the stabilising role of domestic refining capacity. 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 company expressed confidence that if international crude oil prices remain favourable and lower-cost feedstock continues to replace higher-priced inventories, 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.