Dangote Refinery cuts PMS price by N200 in one month, eyes further relief

By Editor

Dangote Petroleum Refinery & Petrochemicals has announced another reduction in the ex-depot price of Premium Motor Spirit (PMS), marking the fourth cut within a month as the company said it is passing lower production costs to consumers despite still refining crude purchased at significantly higher international prices.

The latest N50 per litre reduction lowers the refinery’s ex-depot price of petrol to N1,075 per litre and brings the cumulative reduction in PMS prices to N200 per litre since May 30, 2026.

Within the same period, the refinery also cut the ex-depot price of Automotive Gas Oil (AGO), commonly known as diesel, by N300 per litre and that of Jet A1 aviation fuel by N520 per litre.

According to the company, the successive reductions underscore its commitment to ensuring Nigerians benefit from favourable market conditions while sustaining the long-term viability of domestic refining operations.

In a statement issued on Thursday, the refinery explained that petroleum product prices cannot immediately reflect daily movements in international crude oil prices because crude oil is purchased weeks or months before it is refined.

It noted that the petroleum products currently being supplied to the market are being produced from crude inventories acquired when international oil prices were considerably higher.

The refinery disclosed that the average landed cost of crude processed was about $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.

It also clarified that its crude procurement costs are not determined solely by the widely quoted ICE Brent benchmark.

Instead, it said crude is purchased on a Dated Brent basis, with additional costs such as market premiums, freight and logistics charges, resulting in actual feedstock costs that are significantly higher than benchmark prices.

Despite the elevated crude acquisition costs, Dangote Refinery said it deliberately absorbed a substantial portion of the increase instead of passing the full burden to consumers, in a bid to stabilise the domestic market and shield Nigerians from volatility in global energy prices.

The company added that this pricing strategy has helped keep petroleum product prices in Nigeria below those of neighbouring countries, even after taxes are considered.

It noted that as cheaper crude cargoes gradually replace higher-cost inventories in its production cycle, the resulting cost savings are being transferred to consumers through phased price reductions.

“Today’s N50 per litre reduction is the fourth price cut in one month, bringing cumulative reductions to over 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 company said.

It added that domestic refining has become a stabilising force for Nigeria’s energy market.

“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.”

The refinery expressed confidence that if international crude prices remain favourable and lower-cost feedstock continues to replace more expensive inventories, Nigerians should expect further moderation in petroleum product prices.

Dangote Petroleum Refinery reiterated its commitment to supplying high-quality, internationally certified petroleum products at competitive prices while supporting Nigeria’s economic growth and the long-term development of the downstream petroleum sector.