Abayomi Susan
…cuts PMS by N200 per litre in one month, absorbs rising global crude costs to cushion consumers
Dangote Petroleum Refinery & Petrochemicals has announced another reduction in the ex-depot price of Premium Motor Spirit (PMS), marking its fourth price adjustment within one month as it continues to pass on production cost savings to consumers despite refining crude oil acquired at significantly higher international prices.
The latest reduction of N50 per litre brings the refinery’s cumulative cut in the ex-depot price of PMS to N200 per litre since May 30, 2026, lowering the gantry price to N1,075 per litre. During the same period, the refinery also reduced the ex-depot price of Automotive Gas Oil (AGO) by N300 per litre and Jet A1 aviation fuel by N520 per litre.
According to the company, the sustained price reductions underscore its commitment to ensuring Nigerians benefit from improving market conditions while preserving the long-term sustainability of domestic refining operations.
In a statement issued on Thursday, the refinery explained that petroleum product pricing cannot immediately reflect daily fluctuations in international crude oil prices because crude oil is typically purchased several weeks, and in some cases months, before refining. Consequently, the products currently supplied to the domestic market are derived from crude inventories acquired when global prices were considerably higher.
The company disclosed that 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 price of about US$71.01 per barrel.
It further clarified that its crude procurement costs are not determined solely by the widely quoted ICE Brent benchmark. Rather, crude purchases are based on the Dated Brent pricing mechanism, with additional costs such as market premiums, freight and logistics factored into the final acquisition cost, resulting in feedstock prices that are significantly higher than benchmark quotations.
Despite the elevated cost of crude procurement during the period, Dangote Refinery said it deliberately absorbed a substantial portion of the additional costs instead of transferring the full burden to consumers, a move aimed at promoting market stability and cushioning Nigerians from the impact of global energy price volatility.
The company noted that this pricing strategy has enabled Nigeria to maintain petroleum product prices below those of neighbouring countries, even after accounting for applicable taxes. It added that as lower-cost crude cargoes gradually replace higher-priced inventories in its production cycle, the resulting cost savings are being passed on to consumers through phased price reductions.
“Today’s N50 per litre reduction represents our fourth price cut within one month, bringing cumulative reductions in the ex-depot price of PMS to over N200 per litre,” the company stated.
“It reflects our commitment to ensuring that pricing decisions are guided by actual production economics and inventory costs rather than short-term movements in international oil markets.
“Nigeria continues to benefit from the stabilising impact of domestic refining capacity. Dangote Petroleum Refinery currently produces sufficient volumes to meet national demand, strengthening the country’s energy security, reducing dependence on imported petroleum products, conserving foreign exchange and enhancing price stability for households and businesses.”
The refinery expressed confidence that, should international crude oil prices remain favourable and lower-cost feedstock continue to replace existing higher-priced inventories, Nigerians can expect further moderation in petroleum product prices.
Dangote Petroleum Refinery reaffirmed its commitment to supplying high-quality, internationally certified petroleum products at competitive prices while contributing to Nigeria’s economic growth, energy security and the long-term development of the downstream petroleum sector.
