The Dangote Petroleum Refinery has announced another reduction in the price of Premium Motor Spirit (PMS), popularly known as petrol, marking the fourth fuel price cut within one month.
According to a statement issued by the refinery, the ex-depot (gantry) price of petrol has been reduced from N1,125 per litre to N1,075 per litre, representing a N50 per litre decrease. The latest adjustment brings the refinery’s cumulative petrol price reduction to more than N200 per litre since May 30, 2026.
The development comes as global crude oil prices continue to ease, creating room for lower domestic fuel prices despite the refinery processing crude purchased at significantly higher costs.
Dangote Refinery Also Reduces Diesel and Aviation Fuel Prices
Beyond petrol, the refinery also announced significant reductions in the prices of other petroleum products.
The ex-depot price of Automotive Gas Oil (AGO), commonly known as diesel, was reduced by N300 per litre, while Jet A1 aviation fuel recorded an even steeper reduction of N520 per litre.
The company said the latest adjustments reflect its commitment to ensuring that Nigerians benefit from favourable market conditions while maintaining the long-term sustainability of its refining operations.
Why Dangote Refinery Reduced Fuel Prices
According to the refinery, its pricing decisions are based on actual production costs and the value of crude oil inventories already purchased, rather than temporary fluctuations in international oil prices.
The company explained that many of the petroleum products currently being supplied were refined from crude oil acquired when prices were considerably higher, making the recent reductions a carefully calculated decision.
The refinery stated:
”Today’s N50 per litre reduction is the fourth price cut in one month, bringing cumulative reductions to above N200 per litre on PMS. This approach ensures that pricing decisions are anchored on actual production economics and inventory costs rather than short-term fluctuations in international oil markets.”
Impact on Nigeria’s Fuel Market
Industry observers believe the continued reduction in Dangote Refinery’s petrol prices could encourage lower pump prices across Nigeria as independent marketers adjust to the new ex-depot rates.
Lower fuel prices may also ease transportation costs, reduce operating expenses for businesses, and provide some relief to households facing rising living costs.
The refinery further noted that its growing production capacity has strengthened Nigeria’s energy security by reducing dependence on imported petroleum products, conserving foreign exchange, and promoting greater price stability.
What This Means for Nigerians
If marketers pass on the reductions to consumers, motorists and businesses could begin to enjoy cheaper petrol in the coming days.
Analysts also believe sustained domestic refining will continue to play a key role in stabilising Nigeria’s downstream petroleum sector, reducing exposure to international supply disruptions, and improving fuel availability nationwide.
In conclusion, the latest fuel price reduction by Dangote Refinery reinforces the growing influence of local refining on Nigeria’s energy market. As the refinery continues to expand production and adjust prices in response to market realities, consumers and businesses alike will be watching closely to see whether retail petrol prices also decline in the weeks ahead.