Dangote Petroleum Refinery & Petrochemicals has announced another reduction in the ex-depot price of Premium Motor Spirit (PMS). This N50 per litre cut is the fourth within a month, bringing the cumulative decrease in the refinery’s PMS ex-depot price to N200 per litre since May 30, 2026, reducing the gantry price to N1,075.
Over the same period, the refinery has 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 stated these successive reductions demonstrate its commitment to ensuring Nigerians benefit from favourable market developments while maintaining the long-term sustainability of domestic refining operations.
The refinery clarified that petroleum product pricing cannot mirror daily movements in international crude oil markets because crude is purchased weeks, and sometimes months, before processing. The products currently supplied are from crude inventories acquired during periods of substantially higher prices.
It disclosed that the average landed cost of crude processed stood at approximately US$124.80 per barrel in May and US$95.25 per barrel in June. This contrasts with the current international benchmark of about US$71.01 per barrel.
The refinery further explained that its crude procurement costs are not based solely on the headline ICE Brent benchmark. Rather, crude is purchased on a Dated Brent basis together with applicable market premiums, freight, and logistics costs, resulting in actual feedstock costs that differ materially from benchmark prices.
Despite the sharp increase in crude acquisition costs during the period, Dangote Refinery deliberately refrained from transferring the full impact to consumers. It chose to absorb a significant portion of the additional costs to support market stability and cushion Nigerians from global energy market volatility.
This pricing approach has helped keep petroleum product prices in Nigeria below those prevailing in neighbouring countries, even after accounting for applicable taxes. As lower-priced crude cargoes progressively enter its production cycle, the refinery has begun systematically passing the benefits to the market through phased price reductions.
The company expressed confidence that if international crude prices remain favourable and lower-cost feedstock continues to replace higher-priced inventories, Nigerians should expect further moderation in petroleum product prices. Dangote Petroleum Refinery reiterated its commitment to supplying high-quality, internationally certified petroleum products at competitive prices, supporting Nigeria’s economic growth and the long-term development of the country’s downstream petroleum sector.
