Dangote Refinery cuts petrol price by ₦200 in one month
Dangote Refinery has reduced petrol prices by ₦200 per litre in one month, marking its fourth price cut since May.
Dangote Petroleum Refinery & Petrochemicals has announced another reduction in the ex‑depot price of Premium Motor Spirit (PMS), marking its fourth price cut within a month. The latest ₦50 per litre reduction brings the cumulative decrease in the refinery’s PMS ex‑depot price to ₦200 per litre since 30 May 2026, reducing the gantry price to ₦1,075. Over the same period, the refinery has reduced the ex‑depot price of Automotive Gas Oil (AGO) by ₦300 per litre and Jet A1 aviation fuel by ₦520 per litre.
The company said the successive reductions demonstrate its commitment to ensuring Nigerians benefit from favourable market developments while maintaining the long‑term sustainability of domestic refining operations. The refinery explained that petroleum product pricing cannot mirror daily movements in international crude oil markets because crude is purchased weeks, and sometimes months, before it is processed. According to the refinery, the petroleum products currently being supplied to the market are being produced from crude inventories acquired during periods of substantially higher prices.
It disclosed that the average landed cost of crude processed stood at approximately $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 also clarified that its crude procurement costs are not based solely on the headline ICE Brent benchmark commonly quoted in the media.
Despite the sharp increase in crude acquisition costs during the period, Dangote Refinery said it deliberately refrained from transferring the full impact to consumers, choosing instead to absorb a significant portion of the additional costs in order to support market stability and cushion Nigerians from the volatility in global energy markets. The company noted that this pricing approach has helped to keep petroleum product prices in Nigeria below those prevailing in neighbouring countries.
The refinery expressed confidence that if international crude prices continue to trade around current levels, sustained price moderation is likely. “Today’s ₦50 per litre reduction is the fourth price cut in one month, bringing cumulative reductions to above ₦200 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,” it said.
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 winners: Nigerian consumers who pay less for fuel. Dangote Refinery, which is building market share. The losers: importers who can no longer compete with domestic refining, and the Nigerian government, which loses some of its leverage over fuel pricing.
Bottom Line: Dangote has cut petrol prices four times in a month. The question is whether the trend continues or whether this is a temporary reprieve.