UPDATED: Dangote Cuts Petrol Price to ₦1,075, Signals More Reductions as Crude Costs Decline

Business, Corporate Affairs

LAGOS, Nigeria (NPA) — Dangote Petroleum Refinery and Petrochemicals has announced another reduction in the ex-depot price of Premium Motor Spirit (PMS), marking its fourth price cut within one month, while assuring Nigerians that further reductions are expected as lower-cost crude oil gradually enters its production cycle.

The latest ₦50 per litre reduction brings the cumulative decrease in the refinery’s ex-depot petrol price to ₦200 per litre since May 30, 2026, lowering the gantry price to ₦1,075 per litre.

Over the same period, the refinery has reduced the ex-depot price of Automotive Gas Oil (AGO), commonly known as diesel, by ₦300 per litre, while Jet A1 aviation fuel has recorded a cumulative reduction of ₦520 per litre.

The company said the successive price cuts underscore its commitment to ensuring Nigerians benefit from favourable market developments while maintaining the operational and financial sustainability of Africa’s largest refinery.

The clarification comes amid growing public concern over the continued high cost of petroleum products despite the recent decline in global crude oil prices following the ceasefire agreement between the United States and Iran.

In a statement issued on Thursday, Dangote Refinery explained that petroleum product prices do not immediately mirror daily movements in international crude oil prices because crude is procured weeks—and in some cases months—before it is refined.

According to the company, crude supply contracts are largely based on monthly average pricing mechanisms rather than prevailing spot market prices.

As a result, the petroleum products currently being supplied to the Nigerian market are being produced from inventories acquired when crude prices were substantially higher than current international benchmarks.

The refinery disclosed that the average landed cost of crude processed in May was approximately 124.80 US dollars per barrel, while June averaged 95.25 US dollars per barrel, compared with the current international benchmark price of about 71.01 US dollars per barrel.

It also noted that its crude purchases are not based solely on the Brent benchmark quoted in international markets but include Dated Brent premiums, freight and logistics costs, resulting in significantly higher landed costs.

Despite the elevated feedstock costs, the refinery said it deliberately absorbed a substantial portion of the increase instead of transferring the full burden to consumers.

According to the company, the strategy was adopted to promote market stability, ease inflationary pressures and shield Nigerians from the extreme volatility experienced in global energy markets.

“These reductions demonstrate our commitment to passing on cost efficiencies to consumers while maintaining the operational and financial sustainability of domestic refining,” the statement said.

The company added that the latest ₦50 per litre reduction is the fourth cut in petrol prices within one month, stressing that its pricing decisions are based on actual production economics and inventory costs rather than short-term fluctuations in international oil prices.

Dangote Refinery also highlighted the strategic role of domestic refining in strengthening Nigeria’s energy security.

It said local refining has significantly reduced dependence on imported petroleum products, conserved foreign exchange and enhanced price stability for consumers and businesses.

Looking ahead, the refinery expressed optimism that fuel prices would continue to moderate as lower-cost crude cargoes gradually replace higher-priced inventories, provided international market conditions remain favourable.

“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.

It thanked Nigerians for their continued confidence and support, reaffirming its commitment to building a stable, efficient and globally competitive downstream petroleum industry that serves the interests of consumers, businesses and the nation.