Dangote Refinery cuts petrol price again, slashes ex-depot rate

Dangote Petroleum Refinery has announced another reduction in the ex-depot price of Premium Motor Spirit (PMS), cutting the price by N50 per litre to N1,075 per litre, the fourth downward review within one month.

The latest adjustment brings the cumulative reduction in the refinery’s petrol price to N200 per litre since the end of May, as the company continues efforts to ease the burden on consumers amid improving crude oil market conditions.

In a statement issued on Thursday, the refinery also announced significant price reductions for other petroleum products. It said the ex-depot price of Automotive Gas Oil (AGO), commonly known as diesel, has been reduced by N300 per litre, while the price of Jet A1 aviation fuel has fallen by N520 per litre over the same period.

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

The refinery explained that domestic fuel prices cannot immediately mirror fluctuations in global crude oil prices because crude oil used for refining is often purchased several weeks or months before production.

It disclosed that the petroleum products currently being supplied were refined from crude oil inventories acquired when international oil prices were significantly higher than current levels.

READ ALSO; MRS slashes petrol price by N50/Litre as Dangote Refinery cuts fuel costs

Providing details of its procurement costs, the company said the average landed cost of crude processed stood at about $124.80 per barrel in May and declined to approximately $95.25 per barrel in June, compared with the current international benchmark price of around $71.01 per barrel.

Dangote Refinery further clarified that its crude procurement costs are determined using the Dated Brent pricing system, which factors in market premiums, freight and logistics expenses, rather than relying solely on the ICE Brent benchmark commonly referenced in the media.

Despite the higher cost of crude purchases during the period, the company said it deliberately absorbed a substantial portion of the increased expenses instead of passing them on to consumers.

According to the refinery, the strategy is aimed at promoting market stability, shielding Nigerians from volatility in the global energy market and ensuring more affordable petroleum products.

It added that the pricing approach has enabled Nigeria to maintain petroleum product prices below those of neighbouring countries, even after accounting for applicable taxes.

The company expressed optimism that as lower-cost crude cargoes gradually replace higher-priced inventories in its production cycle, consumers will continue to benefit from phased reductions in fuel prices.

Describing the latest adjustment as its fourth petrol price cut within one month, Dangote Refinery said its pricing decisions are based on actual production costs and inventory economics rather than short-term movements in international crude oil prices.

The refinery also reaffirmed that its production capacity is sufficient to meet Nigeria’s domestic fuel demand, a development it said would strengthen national energy security, reduce dependence on imported petroleum products, conserve foreign exchange and improve price stability for businesses and consumers.

Dangote Petroleum Refinery added that if international crude oil prices remain favourable and lower-cost feedstock continues to enter its production cycle, Nigerians should expect further moderation in the prices of petrol, diesel and aviation fuel.

The company reaffirmed its commitment to supplying high-quality, internationally certified petroleum products at competitive prices while supporting Nigeria’s