Dangote Petroleum Refinery Cuts Premium Motor Spirit Prices Again
Dangote Petroleum Refinery & Petrochemicals has announced another reduction in the depot price of Premium Motor Spirit (PMS), marking the fourth price cut in less than a month. The company continues to pass on the benefits of reduced production costs to consumers, despite sourcing crude oil at significantly higher international prices.
Details of the Price Adjustments
As of May 30, 2026, the latest reduction of N50 per liter brings the refinery’s ex-PMS depot price down to N200 per liter. Additionally, the gantry price has been lowered to N1,075. During this same period, Dangote Refinery has also cut the ex-depot price of Automotive Gas Oil (AGO) by N300 per liter and Jet A1 aviation fuel by N520 per liter.
Commitment to Market Sustainability
The company emphasized that these successive cuts reflect a commitment to ensuring that Nigerians reap the benefits of favorable market conditions while also maintaining the sustainability of domestic refining operations in the long term.
Understanding Price Dynamics
In a statement released on Thursday, Dangote Refinery clarified that the pricing of petroleum products does not always align with daily fluctuations in the international crude oil market. The crude oil used in current production was acquired during a period of rising prices, and as such, cannot immediately reflect the newfound market conditions.
Current Pricing Context
The average landed cost of processed crude oil was approximately $124.80 per barrel in May and $95.25 in June, in contrast to the current international rate of around $71.01 per barrel. The refinery further pointed out that its crude sourcing costs extend beyond the often-cited ICE Brent benchmark, incorporating applicable market premiums and logistics costs, which significantly impact actual feedstock expenses.
Consumer Support Amid Rising Costs
Despite the surge in crude oil acquisition costs, Dangote Refinery made a strategic choice to absorb a portion of these expenses instead of passing them entirely onto consumers. This decision was intended to foster market stability and alleviate some of the pressures from the global energy market’s volatility.
Long-Term Pricing Strategies
The company noted that its pricing approach has resulted in lower petroleum product prices in Nigeria compared to neighboring countries, even after accounting for appropriate taxes. As lower-priced crude oil becomes integrated into the production cycle, refineries are systematically adapting their pricing strategies to reflect production economics rather than transient fluctuations in international markets. With this latest cut of N50 per liter, the total reduction in PMS prices over the past month exceeds N200 per liter, aimed at ensuring more stable pricing for consumers.
Future Outlook for Petroleum Prices
Dangote Refinery expressed confidence that, should international crude oil prices maintain their favorable trajectory, Nigerian consumers could expect further reductions in petroleum product prices. The refinery remains committed to providing high-quality, internationally certified petroleum products at competitive rates, which supports both Nigeria’s economic growth and the long-term development of the downstream petroleum sector.
