Dangote Petroleum Refinery & Petrochemicals has announced a new drop in the ex-depot price of Premium Motor Spirit (PMS). This is the fourth price cut in a month. The company said it is passing on lower production costs to customers despite processing crude oil bought at much higher international prices.
The latest reduction is N50 per litre. This brings the total drop in the refinery’s PMS ex-depot price to N200 per litre since May 30, 2026. The new gantry price is now 1,075. During this same time, the refinery has also cut 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 that these price cuts show its commitment to ensuring that Nigerians benefit from good market conditions. It is also focused on maintaining the sustainability of local refining operations.
In a statement released on Thursday, Dangote Refinery explained that the prices of petroleum products do not change daily with international crude oil prices. This is because crude oil is bought weeks or even months ahead before it gets processed. The refinery pointed out that the products being supplied now come from crude bought when prices were much higher.
It mentioned that the average cost of crude processed was about US$124.80 per barrel in May and US$95.25 per barrel in June. This is much higher than the current international benchmark of about US$71.01 per barrel.
The refinery further explained that its crude purchasing costs are not just based on the ICE Brent benchmark often cited in the media. Instead, crude is bought on a Dated Brent basis along with market premiums, freight, and logistics costs. This means the actual costs are often very different from the benchmark prices.
Despite the high costs of crude acquisition during this period, Dangote Refinery said it chose not to pass all the extra costs to consumers. Instead, it absorbed a large part of the increased costs to help keep the market stable and protect Nigerians from the fluctuations in global energy prices.
The company pointed out that this pricing strategy has kept the prices of petroleum products in Nigeria lower than those in nearby countries, even after including taxes. It added that as cheaper crude begins to enter its production cycle, the refinery will continue to gradually lower prices in the market.
"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 based on actual production costs rather than short-term changes in international oil prices," it said. "Nigeria today benefits from the stabilizing effect of local refining capacity. The Dangote Petroleum Refinery currently supplies enough to meet national demand, helping to improve energy security, reduce reliance on imports, save foreign exchange, and provide better price stability for consumers and businesses."
The company is optimistic that if international crude prices stay low and cheaper feedstock continues to replace more expensive supplies, Nigerians can expect further drops in petroleum product prices.
Dangote Petroleum Refinery reaffirmed its commitment to providing high-quality, internationally certified petroleum products at competitive prices. It also aims to support Nigeria’s economic growth and the long-term development of the country’s petroleum sector.
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