Dangote Refinery cuts petrol price to N1,075/litre, extends reductions on diesel, jet fuel

DANGOTE Petroleum Refinery has reduced the ex-depot price of Premium Motor Spirit (PMS), also known as petrol, by N50 per litre to N1,075 per litre, marking its 4th downward price review within the last month.

The latest adjustment brings the total reduction in the refinery’s ex-depot petrol price to N200 per litre since May 30, 2026. During the same period, the company also cut the ex-depot price of Automotive Gas Oil (diesel) by N300 per litre and reduced the price of Jet A1 aviation fuel by N520 per litre.

According to the refinery, the successive price cuts demonstrate its commitment to transferring the benefits of lower production costs to consumers while ensuring the long-term viability of its refining operations.

In a statement issued on Thursday, the company explained that domestic fuel prices cannot immediately reflect fluctuations in global crude oil prices because crude purchases are made several weeks or even months before refining begins.

It noted that petroleum products currently being supplied to the market are refined from crude oil acquired when international prices were significantly higher than current levels. 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 prevailing benchmark price of roughly $71.01 per barrel.

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Dangote Refinery further clarified that its crude procurement is not based solely on the widely quoted ICE Brent benchmark. Instead, it purchases crude using the Dated Brent pricing mechanism, alongside additional costs such as market premiums, freight and logistics, resulting in feedstock costs that are considerably higher than benchmark quotations.

Despite these elevated input costs, the refinery said it chose to absorb a substantial portion of the additional expenses rather than pass the full burden on to consumers. It added that this strategy has helped keep fuel prices in Nigeria below those of neighbouring countries, even after taxes are considered.

The company said the gradual arrival of lower-cost crude cargoes into its production cycle has enabled it to implement phased price reductions, with the latest N50 per litre cut representing the 4th reduction within one month.

Dangote Refinery stated that its pricing decisions are driven by actual production economics and inventory costs rather than short-term movements in international crude markets.

The company also maintained that its current refining capacity is sufficient to meet Nigeria’s domestic fuel demand, reducing reliance on imports, conserving foreign exchange, strengthening energy security and supporting greater price stability.

Looking ahead, the refinery expressed optimism that fuel prices could decline further if international crude prices remain favourable and lower-cost crude continues to replace existing higher-priced inventories.

It reaffirmed its commitment to supplying high-quality petroleum products that meet international standards at competitive prices while contributing to Nigeria’s economic growth and the long-term development of the downstream oil sector.