Dangote Refinery Slashes Petrol Price Again, Hints at More Reductions as Crude Costs Ease
Dangote Petroleum Refinery & Petrochemicals has announced another reduction in the ex-depot price of Premium Motor Spirit (PMS), cutting the price by N50 per litre in its fourth downward review within one month.
The latest adjustment brings the refinery’s cumulative reduction in the ex-depot price of petrol to N200 per litre since May 30, 2026, lowering the gantry price to N1,075 per litre. During the same period, the refinery also reduced the ex-depot price of Automotive Gas Oil (AGO) by N300 per litre and Jet A1 aviation fuel by N520 per litre.
The company said the consistent price cuts reflect its commitment to ensuring Nigerians benefit from lower production costs while maintaining the long-term sustainability of local refining operations.
In a statement issued on Thursday, the refinery explained that petroleum product prices cannot immediately reflect daily changes in international crude oil prices because crude oil is typically purchased weeks or months before refining.
According to the company, the petroleum products currently supplied to the market are being refined from crude inventories acquired when global oil prices were significantly higher.
Dangote Refinery disclosed that the average landed cost of crude processed was about 124.80 US dollars per barrel in May and 95.25 US dollars per barrel in June, compared to the current international benchmark price of approximately 71.01 US dollars per barrel.
The refinery also clarified that its crude procurement costs are determined not only by the widely quoted ICE Brent benchmark but also by Dated Brent pricing, market premiums, freight charges and logistics costs, making its actual feedstock costs considerably higher than benchmark figures.
Despite the sharp rise in crude acquisition costs during the period, the company said it deliberately absorbed a substantial portion of the increased expenses instead of transferring the full burden to consumers, in a bid to promote market stability and shield Nigerians from the volatility of the global energy market.
It noted that this pricing strategy has helped keep petroleum product prices in Nigeria below those of neighbouring countries, even after factoring in applicable taxes.
The refinery added that as lower-priced crude cargoes gradually replace earlier high-cost inventories, it has begun passing the savings on to consumers through phased reductions in fuel prices.
“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,” the company stated.
It further stressed that Nigeria is increasingly benefiting from the stabilising impact of domestic refining, noting that the Dangote Petroleum Refinery currently supplies enough petroleum products to meet national demand, strengthen energy security, reduce dependence on imports, conserve foreign exchange and improve price stability for consumers and businesses.
The company expressed optimism that if international crude oil prices remain favourable and lower-cost crude continues to replace expensive inventories, Nigerians should expect further reductions in the prices of petroleum products.
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.