Dangote Petroleum Refinery has reduced its ex-gantry price for premium motor spirit (PMS), also known as petrol, by N50.
The latest adjustment brings the ex-gantry price of petrol down to N1,075 per litre.
In a statement issued on Thursday, the refinery said the latest reduction marks its fourth price cut within one month, pushing total reductions on PMS to over N200 per litre.
According to the company, the price reduction is driven by production economics and inventory costs rather than the recent decline in global crude oil prices.
“This approach ensures that pricing decisions are anchored on actual production economics and inventory costs rather than short term fluctuations in international oil markets. Nigeria today benefits from the stabilising role of domestic refining capacity,” the company said.
Over the same one-month period, the refinery said it also reduced the ex-gantry price of automotive gas oil (AGO), also known as diesel, by N300 per litre, while Jet A1 aviation fuel dropped by N520 per litre.
The refinery explained that petroleum product prices do not instantly reflect daily changes in global crude prices because crude oil is typically purchased weeks or months before refining.
It added that the products currently entering the market were refined from crude inventories acquired when international oil prices were significantly higher.
According to the statement, the average landing cost of crude processed stood at about $124.80 per barrel in May and $95.25 per barrel in June, compared with the current international benchmark of roughly $71.01 per barrel.
The refinery also clarified that its crude procurement costs are not determined solely by the widely quoted ICE Brent benchmark, but also include dated Brent pricing, market premiums, freight and logistics expenses.
Despite the sharp rise in crude acquisition costs during the period, the company said it deliberately absorbed a substantial portion of the added costs instead of transferring the full burden to consumers in a bid to maintain market stability.
Dangote refinery said this pricing strategy has helped keep petroleum product prices in Nigeria lower than those in neighbouring countries, even after taxes.
The company added that as cheaper crude cargoes gradually enter its production cycle, the benefits are being passed on to consumers through phased price reductions.
The refinery expressed optimism that if global crude prices remain favourable and lower-cost crude continues to replace existing high-cost inventory, Nigerians could see further reductions in petrol prices.