Dangote Petroleum Refinery has announced another reduction in the price of Premium Motor Spirit (PMS), offering fresh hope to millions of Nigerians grappling with high transportation and living costs. The latest cut of N50 per litre marks the refinery’s fourth price reduction in just one month, bringing the total decrease in PMS prices to more than N200 per litre since May 30, 2026. With the new adjustment, the ex-depot price now stands at N1,075 per litre.
The company revealed that the price cuts extend beyond petrol, with Automotive Gas Oil (diesel) dropping by N300 per litre and Jet A1 aviation fuel falling by N520 per litre during the same period. According to Dangote Refinery, the reductions reflect its commitment to ensuring that consumers benefit from improved market conditions while maintaining a sustainable domestic refining operation capable of supporting Nigeria’s growing energy needs.
Addressing concerns about fluctuations in global oil prices, the refinery explained that fuel pricing is influenced by the cost of crude oil purchased weeks or even months before production. It noted that much of the fuel currently being supplied was refined from crude acquired when international prices were significantly higher. The company disclosed that the average landed cost of crude processed reached about $124.80 per barrel in May and $95.25 per barrel in June, compared to the current global benchmark of around $71 per barrel.
Despite these elevated procurement costs, Dangote Refinery said it chose not to transfer the full burden to consumers. Instead, it absorbed a substantial portion of the additional expenses to help stabilize the local market and shield Nigerians from the volatility often associated with global energy markets. The refinery also emphasized that its pricing model is based on actual production and inventory costs rather than short-term movements in international crude oil benchmarks.
Looking ahead, the company expressed optimism that fuel prices could decline further if global crude prices remain favorable and lower-cost crude inventories continue to enter its production cycle. Dangote Refinery said its growing domestic refining capacity is helping Nigeria reduce reliance on fuel imports, conserve foreign exchange, strengthen energy security, and deliver greater price stability. For many Nigerians, the latest price cut signals not only immediate relief but also the possibility of more affordable fuel in the months ahead.
source: premiumtime
