Nigerians could soon pay less for petrol after the Dangote Petroleum Refinery announced another reduction in the ex-depot price of Premium Motor Spirit (PMS).
The refinery reduced its ex-depot petrol price by N50 per litre, bringing the new gantry price to N1,075 per litre. Furthermore, the company revealed that it has now cut its PMS ex-depot price by a total of N200 per litre since May 30, 2026.
However, the company said it chose to absorb part of the additional production cost instead of transferring the full burden to consumers.
The latest reduction also extends to other petroleum products. According to the refinery, the ex-depot price of Automotive Gas Oil (diesel) has fallen by N300 per litre, while Jet A1 aviation fuel has dropped by N520 per litre during the same period.
Meanwhile, Dangote Refinery explained that fuel pricing cannot immediately reflect daily movements in international crude oil prices.
According to the company, crude oil is purchased several weeks or even months before it is refined into finished petroleum products.
As a result, products currently supplied to the Nigerian market are still being produced from crude inventories acquired when global oil prices were much higher.
The refinery disclosed that the average landed cost of crude processed stood at about 124.80 dollars per barrel in May and 95.25 dollars per barrel in June.
These figures remain significantly above the current international benchmark price of about 71.01 dollars per barrel.
Furthermore, the company clarified that its crude purchases are not based solely on the Brent crude price often reported by international media.
Instead, actual procurement costs include market premiums, freight charges and logistics expenses.
Consequently, the real production cost is often much higher than the benchmark crude price.
Despite these higher costs, the refinery said it deliberately chose to shield Nigerians from the full impact of global market volatility.
According to the company, this strategy has helped keep petrol prices in Nigeria below those in many neighbouring countries.
Moreover, the refinery stated that cheaper crude cargoes are gradually entering its production cycle.
The company said:
“Today’s N50 per litre reduction is the fourth price cut in one month, bringing cumulative reductions to above N200 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.”
Dangote Refinery also highlighted the growing importance of local refining to Nigeria’s energy sector.
According to the company:
“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.”
Furthermore, the company expressed optimism that petrol prices could decline even further if favourable international market conditions continue.
It said lower-cost crude inventories will gradually replace more expensive stock, allowing additional reductions in the coming weeks.
Meanwhile, the refinery reaffirmed its commitment to producing high-quality petroleum products at competitive prices while supporting Nigeria’s economy through local refining and improved energy security.
