By Dangote Petroleum Refinery and Petrochemicals has defended its petroleum product pricing strategy, saying its recent reductions in the ex-depot prices of Premium Motor Spirit (PMS), Automotive Gas Oil (AGO) and Jet A1 aviation fuel reflect its commitment to easing the burden on consumers despite processing crude purchased at significantly higher prices.
In a statement issued on Friday, the refinery said it has reduced the ex-depot price of PMS by more than N200 per litre since May 30, 2026, following four separate price cuts within one month. It also stated that AGO prices have fallen by N300 per litre, while Jet A1 aviation fuel has been reduced by N520 per litre.
The company explained that refinery pricing is not determined by daily movements in global crude oil prices, noting that crude is procured weeks or even months before refining under commercial contracts linked mainly to monthly average pricing mechanisms.
According to the refinery, petroleum products currently being supplied were produced from crude inventories acquired at costs far above prevailing international market 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 feedstock is purchased using a pricing formula based on Dated Brent, market premiums, freight and logistics costs rather than the headline Brent crude price commonly reported by the media.
The statement said the company deliberately absorbed a substantial share of the increase in crude oil costs instead of passing the full impact on to consumers.
”Notwithstanding these elevated feedstock costs, Dangote Petroleum Refinery did not immediately transfer the full impact of rising crude prices to the Nigerian market.” the statement read.
The company said the approach was intended to support market stability, curb inflationary pressures and protect consumers from volatility in the international energy market.
It maintained that fuel prices in Nigeria remain lower than those in neighbouring countries even after accounting for taxes.
The refinery attributed the latest reduction in petrol prices to the gradual introduction of lower-cost crude into its production cycle.
”Today’s N50 per litre reduction is the fourth price cut in one month, bringing cumulative reductions to above N200 per litre on PMS.” the statement added.
Dangote Refinery further stated that domestic refining capacity has strengthened Nigeria’s energy security by reducing dependence on imported petroleum products, conserving foreign exchange and ensuring greater price stability.
It expressed optimism that Nigerians could see additional price moderation in the coming months as lower-cost crude inventories replace more expensive stock, provided global market conditions remain favourable.
Reaffirming its long-term commitment, the refinery said it would continue supplying high-quality petroleum products at competitive prices while supporting Nigeria’s economic growth and strengthening the country’s energy security.
