Dangote Petroleum Refinery has once again lowered the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, reducing the cost by N50 per litre from N1,125 to N1,075.
This latest price adjustment represents the fourth reduction in the refinery’s petrol price within the past month, bringing the total cut in its ex-depot PMS price to N200 per litre since May 30, 2026.
Why petrol prices do not change daily
According to the company, the fresh reduction shows its commitment to ensuring that consumers benefit from lower production costs, despite the fact that it is still processing crude oil purchased at much higher international market prices.
In addition to petrol, Dangote Refinery announced that it has slashed the ex-depot price of Automotive Gas Oil (diesel) by N300 per litre and reduced the price of Jet A1 aviation fuel by N520 per litre during the same period.
The refinery stated that fluctuations in global crude oil prices cannot be reflected instantly in the prices of refined petroleum products because crude oil used for refining is usually bought several weeks or even months before processing begins.
It further explained that the petroleum products currently being distributed across the market are refined from crude oil inventories acquired when international crude prices were considerably higher.
The company disclosed that the average landed cost of the crude it processed was approximately $124.80 per barrel in May and $95.25 per barrel in June, compared with the current international benchmark price of about $71.01 per barrel, the Nation reports.
It also pointed out that the cost of procuring crude oil is calculated using the Dated Brent pricing mechanism, together with market premiums, freight expenses, and other logistics costs. As a result, the refinery’s actual feedstock costs remain above the benchmark Brent crude price.
The refinery 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 explains pricing strategy
Despite paying higher prices to acquire crude oil, Dangote Refinery said it has intentionally absorbed a substantial share of those increased costs rather than passing the entire burden on to consumers.
The company stated that this pricing approach has contributed to keeping petroleum product prices in Nigeria below those of neighbouring countries, even after accounting for taxes.
It added that as lower-cost crude cargoes progressively become part of its refining operations, the resulting savings will continue to be transferred to consumers through gradual reductions in petrol prices.
