Author: Gist Correspondent

Dangote Petroleum Refinery has reduced the ex-depot price of Premium Motor Spirit (PMS), popularly known as petrol, by N50 per litre to N1,075, while opening sales to all petroleum marketers.

The latest adjustment is the refinery's fourth petrol price reduction in one month, bringing the cumulative cut since May 30, 2026, to N200 per litre.

The company also disclosed that it has reduced the ex-depot price of Automotive Gas Oil (diesel) by N300 per litre and Jet A1 aviation fuel by N520 per litre over the same period.

In a statement issued on Thursday, the refinery said the price reductions reflect its commitment to passing lower production costs to consumers, despite refining crude oil purchased at significantly higher international prices.

According to the company, petroleum product prices cannot immediately reflect fluctuations in global crude oil prices because crude is typically purchased weeks or months before refining.

It revealed 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 of about $71.01 per barrel.

The refinery explained that its crude procurement costs are based on Dated Brent pricing, alongside freight, logistics and market premiums, making the actual cost higher than the benchmark prices often reported.

Dangote Refinery said it deliberately absorbed a substantial portion of the higher production costs instead of transferring the burden to consumers, helping to stabilise the domestic market and shield Nigerians from volatility in global energy prices.

It added that the strategy has kept petroleum prices in Nigeria below those in neighbouring countries while strengthening energy security, reducing dependence on fuel imports and conserving foreign exchange.

The company expressed optimism that if international crude oil prices remain favourable and lower-cost crude continues to replace existing inventories, Nigerians could expect further reductions in the prices of petroleum products.

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