Dangote Refinery Reduces Petrol Price by Over N200 Per Litre
Dangote Petroleum Refinery has announced a significant reduction in the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, cutting it by more than N200 per litre since May 30, 2026. The latest adjustment, effective July 2, 2026, lowered the price from N1,125 to N1,075 per litre, marking the fourth price cut in one month.
Ex-depot price refers to the amount charged by refineries to petroleum marketers before transportation, distribution, and retail sales at filling stations. This reduction is expected to translate into lower pump prices for Nigerian consumers.
Dangote Explains Pricing Strategy
In a statement, Dangote Refinery explained that the latest price cut is part of a pricing strategy based on actual production economics and inventory costs, rather than daily fluctuations in international crude oil prices. The company noted that crude oil used for refining is typically purchased weeks or months before processing under commercial contracts linked to monthly average prices. Consequently, pump prices cannot immediately mirror changes in global crude prices.
Dangote also released details of crude cargoes received in May and June, showing that much of the petrol currently being supplied was produced from inventories acquired when crude prices were significantly higher than current market levels. The refinery emphasized that it has absorbed a significant portion of the recent increase in crude oil costs rather than passing the full burden to consumers, a move that has helped stabilize domestic fuel prices and reduce inflationary pressures.
Further Price Cuts Expected
The refinery indicated that Nigerians could see additional reductions in petrol prices as lower-cost crude cargoes gradually replace more expensive inventories in its production cycle. According to the company, declining procurement costs should support further price moderation if international oil market conditions remain favourable, as reported by The Nation.
Dangote also highlighted that its production capacity now supplies enough petrol to meet Nigeria's domestic demand, reducing dependence on fuel imports, conserving foreign exchange, and strengthening the country's energy security.
Context: Petrol Prices Across Nigeria
Earlier, the National Bureau of Statistics (NBS) reported that the average retail price paid by consumers for petrol stood at N1,288.54 in March 2026. This represented a 2.13% increase compared with N1,261.65 recorded in March 2025. On a month-on-month basis, the average retail price rose by 22.55% from N1,051.47 in February 2026.
On a state-level analysis, Anambra State recorded the highest average retail price for petrol at N1,441.22, followed by Sokoto (N1,377.55) and Borno (N1,375.16). The Dangote Refinery's price cuts are expected to help narrow these regional disparities over time.
