By Sandra Chukwunyere
The 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 latest adjustment marks the fourth downward review since May 30, bringing the refinery’s cumulative petrol price reduction to N200 per litre within one month.
The company said the move reflects its commitment to ensuring that Nigerians benefit from lower production costs while sustaining efficient domestic refining operations.
In a statement issued on Thursday, the refinery explained that changes in international crude oil prices do not immediately translate into lower fuel prices because crude oil is typically purchased several weeks or months before it is refined.
According to the company, much of the petrol currently being supplied was refined from crude acquired when global oil prices were significantly higher.
It disclosed that the average landed cost of crude processed was about $124.80 per barrel in May and $95.25 per barrel in June, compared with the current international benchmark price of about $71.01 per barrel.
The refinery also clarified that its crude procurement costs are not determined solely by the widely quoted Brent benchmark. It noted that its crude is purchased on a Dated Brent basis, with additional market premiums, freight and logistics costs significantly increasing the actual feedstock cost.
Despite the higher crude acquisition costs, the company said it absorbed a substantial portion of the increase instead of passing it on to consumers, helping to stabilise domestic fuel prices and cushion Nigerians from volatility in the global oil market.
It added that its pricing strategy has kept petrol prices in Nigeria below those in neighbouring countries, even after taxes.
The refinery said that as lower-cost crude cargoes gradually replace higher-priced inventories, it has continued to pass the savings on to consumers through phased reductions in petrol prices.
It described the latest N50 reduction as part of a deliberate pricing strategy based on actual production economics and inventory costs rather than short-term fluctuations in international crude oil prices.
Dangote Refinery further stated that its production capacity is sufficient to meet Nigeria’s domestic fuel demand, reducing reliance on imported petroleum products, conserving foreign exchange, strengthening energy security and promoting greater price stability.
The company expressed optimism that Nigerians would enjoy further reductions in the prices of petrol and other refined petroleum products if international crude oil prices remain low and more affordable crude supplies continue to enter its refining cycle.
It reaffirmed its commitment to supplying high-quality, internationally certified petroleum products at competitive prices while supporting Nigeria’s energy security and long-term economic growth.
