Dangote Petroleum Refinery has reduced the ex-depot price of Premium Motor Spirit (PMS), popularly known as petrol, by over N200 per litre since May 30, 2026.
The latest adjustment came on July 2, 2026, when the refinery announced a further N50 cut, bringing the ex-depot price down from N1,125 per litre to N1,075.
The ex-depot price is the rate at which petroleum marketers purchase fuel directly from refineries before additional costs such as transportation, distribution, and retail markups are added at filling stations.
Dangote explains fresh petrol price cut
In a statement, the refinery said the new ex-depot price of N1,075 forms part of its pricing approach, which is determined by the actual cost of production and inventory levels rather than the day-to-day movement of international crude oil prices.
According to the company, crude oil used in refining operations is usually purchased several weeks or even months in advance through commercial agreements tied to monthly average prices.
As a result, changes in global crude oil prices are not immediately reflected in domestic petrol prices.
The refinery also disclosed details of the crude cargoes it received in May and June, explaining that a substantial portion of the petrol currently being distributed was refined from inventories bought when crude oil prices were considerably higher than prevailing market rates.
More petrol price cuts expected
Dangote Petroleum Refinery stated that Nigerians may witness additional reductions in petrol prices as lower-cost crude cargoes gradually replace the more expensive inventories currently within its production cycle.
The company noted that if conditions in the international oil market remain favourable, declining crude procurement costs are expected to create room for further price moderation according to the Nation.
The company further revealed that it absorbed a significant share of the recent increase in crude oil costs instead of transferring the full impact to consumers, saying the decision helped maintain stability in domestic fuel prices while easing inflationary pressure.
The refinery also stated that its current production capacity is sufficient to satisfy Nigeria’s local demand for petrol, reducing the country’s reliance on imported fuel, preserving foreign exchange, and reinforcing national energy security.
