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Dangote Petroleum Refinery has reduced the ex-depot price of Premium Motor Spirit by N50 per litre, bringing the price down from N1,125 to N1,075 per litre, the company announced on Thursday.
The latest reduction marks the fourth price cut in one month, bringing the cumulative reduction to over N200 per litre since May 30, 2026.
“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,” the refinery said in a statement.
The refinery said it has also reduced the ex-depot price of Automotive Gas Oil (AGO), commonly known as diesel, by N300 per litre and Jet A1 aviation fuel by N520 per litre over the same period.
“Since May 30, 2026, Dangote Petroleum Refinery has reduced the ex-depot price of Premium Motor Spirit (PMS) by N200 per litre, Automotive Gas Oil (AGO) by N300 per litre and Jet A1 aviation fuel by N520 per litre, despite continuing to process crude oil acquired during a period when international crude prices were significantly higher than current levels,” the company said.
The refinery said the price reductions are being implemented despite continuing to process crude oil acquired during a period when international prices were significantly higher.
“These reductions demonstrate our commitment to passing on cost efficiencies to consumers while maintaining the operational and financial sustainability of domestic refining,” the company said.
Credit: Guardian
According to the company, the average landed cost of crude processed was approximately US$124.80 per barrel in May and US$95.25 per barrel in June, compared with the current international benchmark of about US$71.01 per barrel.
“It is important to clarify that refinery pricing does not move in tandem with daily international crude oil quotations. Crude oil is procured weeks, and in some cases months, before it is processed, under commercial contracts linked primarily to monthly average pricing mechanisms rather than prevailing spot market prices,” the refinery explained.
The company added: “Furthermore, refinery feedstock is not purchased at the headline ICE Brent price commonly reported in the media. Our crude is acquired on a Dated Brent plus market premium, freight and logistics cost basis, resulting in actual landed costs that differ materially from benchmark quotations.”
“Notwithstanding these elevated feedstock costs, Dangote Petroleum Refinery did not immediately transfer the full impact of rising crude prices to the Nigerian market. Instead, the refinery absorbed a substantial portion of the increase in order to support market stability, reduce inflationary pressures and shield consumers from the extreme volatility witnessed in global energy markets,” the refinery said.
“As lower-priced crude cargoes progressively enter our production cycle, we have begun systematically passing the benefits to the market through phased price reductions,” the company added.
The statement added: “Nigeria today benefits from the stabilising role of domestic refining capacity. The Dangote Petroleum Refinery currently supplies volumes sufficient to meet national demand, helping to strengthen energy security, eliminate dependence on imports, conserve foreign exchange and provide greater price stability for consumers and businesses.”
“Our objective remains unchanged: to supply high quality, internationally compliant petroleum products at competitive prices while strengthening Nigeria’s energy security, supporting economic growth and ensuring the long-term sustainability of Africa’s largest refinery,” the company said.
The latest reduction follows the refinery’s suspension of its 20-member consortium arrangement, opening product loading to all qualified marketers.
Dangote Refinery Cuts Fuel Prices Again, signals further moderation
Dangote Petroleum Refinery & Petrochemicals has announced another reduction in the ex-depot price of Premium Motor Spirit (PMS), marking its fourth price cut within a month as the company said it continues to… pic.twitter.com/wSNtk55esD
— Dangote Group (@DangoteGroup) July 2, 2026
