Dangote Petroleum Refinery & Petrochemicals has reduced the ex-depot price of Premium Motor Spirit (PMS), also known as petrol, by N50 to N1,075 per litre, marking its fourth price reduction within one month.
The latest adjustment was announced in a statement published by the refinery on X on Thursday, continuing a series of downward price reviews that began at the end of May.
With the new reduction, the refinery has now cut its ex-depot petrol price by a cumulative N200 per litre since May 30, 2026. The company said the reductions reflect its commitment to passing lower production costs on to consumers despite still processing crude oil acquired at significantly higher international prices.
What the data is saying
The latest price reduction reinforces the refinery’s strategy of adjusting domestic fuel prices in line with changing market conditions rather than maintaining fixed pricing. By lowering its ex-depot price for the fourth time in a month, Dangote Refinery is signalling that easing costs in the international oil market are gradually filtering through to the domestic downstream sector.
A cumulative reduction of N200 per litre within one month represents one of the most significant downward price adjustments since the refinery commenced large-scale petrol supply. The repeated cuts suggest that lower crude oil prices, improving operational efficiencies, and evolving market conditions are beginning to reduce production costs, allowing the refinery to offer cheaper supplies to marketers.
The ex-depot price serves as the wholesale price paid by petroleum marketers before transportation, storage, distribution, and retail margins are added. As a result, reductions at the refinery level have the potential to translate into lower pump prices across filling stations, although the speed and extent of those reductions will depend on marketers’ existing inventories, logistics costs, and competitive dynamics in different regions.
The announcement also comes amid growing calls by government officials for marketers to reduce retail fuel prices following the recent moderation in global crude oil prices. The latest adjustment may therefore increase pressure on downstream operators to reflect lower wholesale costs in pump prices paid by consumers.
The refinery’s decision to continue reducing prices despite refining crude purchased at previously higher international prices also indicates its willingness to absorb part of the cost adjustment while maintaining market competitiveness. As newer crude purchases are made at relatively lower prices, there could be additional room for further pricing adjustments if global market conditions remain favourable.
What you should know
Since commencing petrol supply to the domestic market, Dangote Refinery has emerged as the country’s largest local supplier of PMS, significantly reducing Nigeria’s dependence on imported fuel and reshaping competition in the downstream petroleum sector.
The latest price cut follows a broader decline in international crude oil prices after geopolitical tensions in the Middle East eased. Lower crude prices generally reduce refining costs over time, although the impact is often delayed because refineries process crude purchased under earlier contracts at higher prices.
The continued downward adjustment in ex-depot prices is expected to influence pricing across Nigeria’s downstream market in the coming weeks. If marketers fully pass on the lower wholesale costs to consumers, motorists and businesses could benefit from lower fuel expenses, which may also help moderate transportation costs and inflationary pressures across the economy.
