The Dangote Petroleum Refinery has reduced its ex-gantry price for premium motor spirit (PMS), also known as petrol, by N50, bringing the new price to N1,075 per litre.
In a statement issued on Thursday, the company described the latest adjustment as its fourth price cut within one month, noting that cumulative reductions on PMS have now exceeded N200 per litre.
According to the refinery, the price reduction is driven by actual production economics and inventory costs rather than fluctuations in global crude oil prices.
“This approach ensures that pricing decisions are anchored on actual production economics and inventory costs rather than short term fluctuations in international oil markets. Nigeria today benefits from the stabilising role of domestic refining capacity,” the company stated.
Within the same one-month period, the refinery also reduced the ex-gantry price of automotive gas oil (AGO), also known as diesel, by N300 per litre, and Jet A1 aviation fuel by N520 per litre.
The company explained that petroleum product pricing does not immediately reflect daily changes in international crude oil markets because crude oil is typically purchased weeks or months before refining.
It noted that the products currently being supplied were refined from crude inventories acquired when global prices were significantly higher.
The refinery disclosed that the average landing cost of crude processed stood at approximately $124.80 per barrel in May and $95.25 per barrel in June, compared to the current international benchmark of about $71.01 per barrel.
It further clarified that its crude procurement costs are not based solely on the widely quoted ICE Brent benchmark, but also include dated Brent pricing, market premiums, freight, and logistics costs.
Despite the surge in crude acquisition costs during the period, the refinery said it chose not to fully pass the financial burden to consumers, instead absorbing a substantial portion to support price stability.
The company added that this pricing strategy has helped keep petroleum product prices in Nigeria lower than those in neighbouring countries, even after accounting for taxes.
Dangote Refinery noted that as lower-cost crude cargoes gradually enter its production cycle, it has begun transferring the benefits to consumers through phased price reductions.
It expressed optimism that if international crude prices remain favourable and lower-cost feedstock continues to replace higher-priced inventory, Nigerians can expect further easing in petroleum product prices.
