LAGOS — Dangote Petroleum Refinery has announced another reduction in the ex-depot price of Premium Motor Spirit (PMS), marking the fourth price cut within one month and bringing the cumulative reduction in petrol prices to N200 per litre since the end of May.
The latest adjustment reduces the ex-depot price of PMS by N50 per litre, bringing the gantry price to N1,075 per litre.
The refinery also disclosed that it has reduced the ex-depot price of Automotive Gas Oil (AGO) by N300 per litre and Jet A1 aviation fuel by N520 per litre over the same period.
In a statement issued on Thursday, the company said the successive price reductions reflect its commitment to passing on lower production costs to consumers while maintaining the long-term sustainability of its refining operations.
According to the refinery, petroleum product prices cannot immediately reflect fluctuations in international crude oil prices because crude oil is typically purchased weeks or months before refining.
It explained that the petroleum products currently being supplied were refined from crude inventories acquired when global oil prices were significantly higher.
The company disclosed that the average landed cost of crude processed was approximately $124.80 per barrel in May and $95.25 per barrel in June, compared to the current international benchmark price of about $71.01 per barrel.
Dangote Refinery also clarified that its crude procurement costs are determined using the Dated Brent pricing system, which includes market premiums, freight and logistics costs, rather than relying solely on the ICE Brent benchmark commonly reported in the media.
The company stated that despite the higher cost of crude acquisition during the period, it deliberately absorbed a substantial portion of the additional costs instead of transferring the burden to consumers, in a bid to support market stability and cushion Nigerians from volatility in the global energy market.
It noted that this pricing strategy has helped keep petroleum product prices in Nigeria below those of neighbouring countries, even after accounting for applicable taxes.
The refinery added that as lower-cost crude cargoes gradually replace higher-priced inventories in its production cycle, consumers should continue to benefit from phased reductions in petroleum product prices.
Describing the latest adjustment as its fourth petrol price cut in one month, the company said its pricing decisions are guided by actual production economics and inventory costs rather than short-term movements in international crude oil prices.
Dangote Refinery further stated that its production capacity is sufficient to meet Nigeria's domestic fuel demand, helping to strengthen the country's energy security, reduce dependence on imported petroleum products, conserve foreign exchange and provide greater price stability for consumers and businesses.
The company expressed optimism that if international crude oil prices remain favourable and lower-cost feedstock continues to enter its production cycle, Nigerians should expect further moderation in the prices of petroleum products.
Dangote Petroleum Refinery reaffirmed its commitment to supplying high-quality, internationally certified petroleum products at competitive prices while supporting Nigeria's economic growth and the long-term development of the downstream petroleum sector.
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