Dangote Petroleum Refinery has announced another N50 per litre reduction in the ex-depot price of Premium Motor Spirit (PMS), otherwise known as petrol, bringing its cumulative petrol price cuts to over N200 per litre within one month.
The Dangote refinery, announced this in a statement on Thursday, July 2, saying the latest reduction is the fourth downward review of petrol prices since May 30, 2026.
The refinery disclosed that over the same period, it reduced the ex-depot price of Automotive Gas Oil (diesel) by N300 per litre and Jet A1 aviation fuel by N520 per litre, despite processing crude oil purchased when international prices were significantly higher than current levels.
Explaining the rationale behind its pricing decisions, the company said refinery prices do not move in lockstep with daily international crude oil quotations because crude is procured weeks or months before processing under commercial contracts tied to monthly average prices rather than spot market rates.
Dangote refinery stated that the average landed cost of crude processed stood at $124.80 per barrel in May and $95.25 per barrel in June, compared with the current international benchmark of about $71.01 per barrel.
Dangote refinery added that its crude is acquired on a Dated Brent pricing basis with additional market premiums, freight and logistics costs, making its actual feedstock costs higher than benchmark prices widely reported in the media.
Oil prices record three-day decline as US, Iran end talks in Qatar
Despite the higher production costs, Dangote refinery said it absorbed a significant portion of the increase instead of passing it on to consumers in order to support market stability, reduce inflationary pressures, and shield Nigerians from volatility in the global energy market.
Reaffirming its commitment to making petroleum products more affordable for Nigerians, the refinery expressed optimism that fuel prices would decline further as lower-cost crude inventories gradually replace more expensive stock, provided international market conditions remain favourable.
Dangote refinery also said its growing domestic refining capacity has strengthened Nigeria’s energy security by meeting local fuel demand, reducing dependence on imports, conserving foreign exchange and ensuring greater price stability for consumers and businesses.
The refinery reaffirmed its commitment to supplying high-quality petroleum products at competitive prices while supporting Nigeria’s economic growth and the long-term sustainability of domestic refining.