By Ayo Kehinde
Dangote Petroleum Refinery & Petrochemicals has announced another reduction in the ex-depot price of Premium Motor Spirit (PMS), marking its fourth price cut within one month, as the company signalled that Nigerians could expect further price moderation in the coming weeks.
The latest reduction of N50 per litre brings the cumulative decrease in the refinery’s ex-depot price of petrol to over N200 per litre since May 30, 2026, lowering the gantry price to N1,075 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 N300 per litre, while Jet A1 aviation fuel has recorded a cumulative reduction of N520 per litre.
In a statement on Thursday, the refinery said the successive price cuts underscore its commitment to ensuring Nigerians benefit from favourable market developments through fair, responsible, and sustainable pricing of petroleum products.
The company noted that while it remains focused on transferring cost efficiencies to consumers, it is equally committed to maintaining the operational and financial sustainability of domestic refining.
Dangote Refinery explained that its pricing model is not tied directly to daily movements in international crude oil prices, stressing that crude oil is procured weeks or, in some cases, months before refining under commercial contracts linked primarily to monthly average pricing mechanisms rather than prevailing spot market prices.
According to the company, the petroleum products currently being supplied were refined from crude inventories acquired when international crude prices were significantly higher than present levels.
It disclosed that the average landed cost of crude processed by the refinery stood at approximately 124.80 US dollars per barrel in May and 95.25 US dollars per barrel in June, compared with the current international Brent benchmark of about 71.01 US dollars per barrel.
The refinery further clarified that its feedstock is not purchased at the headline Brent price widely reported in the media. Instead, crude is acquired on a Dated Brent basis, with additional market premiums, freight and logistics costs, resulting in actual landed costs that differ materially from benchmark quotations.
Despite these elevated feedstock costs, Dangote Refinery said it deliberately absorbed a substantial portion of the increase instead of transferring the full burden to consumers immediately.
It said the decision was aimed at supporting market stability, easing inflationary pressures, and shielding Nigerians from the sharp volatility witnessed in global energy markets.
“For this reason, prices of petroleum products in Nigeria are still lower than prices in neighbouring countries even after adjusting for taxes,” the company stated.
Dangote Refinery noted that Thursday’s N50 reduction in the ex-depot price of PMS represents the fourth downward adjustment within one month, bringing cumulative reductions to more than N200 per litre.
The company said its pricing decisions are anchored on actual production economics and inventory replacement costs rather than short-term fluctuations in the international oil market.
It expressed optimism that fuel prices would continue to moderate as lower-cost crude cargoes progressively replace higher-cost inventories in its production cycle, provided international market conditions remain favourable.
The refinery also highlighted the stabilising role of domestic refining in Nigeria’s energy sector, saying its production capacity is now sufficient to meet national demand, thereby strengthening energy security, reducing dependence on imported petroleum products, conserving foreign exchange, and providing greater price stability for consumers and businesses.
Reaffirming its long-term commitment, Dangote Petroleum Refinery said its objective remains to supply high-quality, internationally compliant petroleum products at competitive prices while strengthening Nigeria’s energy security, supporting economic growth, and ensuring the long-term sustainability of Africa’s largest refinery.
The company expressed appreciation to Nigerians for their continued confidence and support, pledging to remain committed to building a stable, efficient, and globally competitive downstream petroleum industry that serves the interests of consumers, businesses, and the nation as a whole.
