Dangote Refinery slashes petrol price by N50, fourth cut in one month
By Aboki Forex —
Dangote Petroleum Refinery has reduced the ex-depot price of petrol by N50 per litre to N1,075, marking its fourth price cut in one month. The cumulative reduction now stands at N200 per litre since May 30, 2026.
The company said it is passing the benefits of lower crude oil costs to consumers while absorbing part of the higher production costs.
Diesel and aviation fuel also cheaper
Beyond petrol, Dangote Refinery disclosed that it has reduced the ex-depot price of Automotive Gas Oil (diesel) by N300 per litre and Jet A1 aviation fuel by N520 per litre over the same period.
The refinery explained that petroleum product prices cannot immediately reflect daily movements in global crude oil prices because crude oil is typically purchased weeks or months before refining. According to the company, the petroleum products currently supplied to the market are being refined from crude inventories acquired when international oil prices were substantially higher.
Crude costs remain high
The refinery revealed that the average landed 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 around $71.01 per barrel.
The refinery added that its crude procurement costs are determined using the Dated Brent pricing system, alongside market premiums, freight charges, and logistics costs, making its actual feedstock costs higher than the benchmark Brent crude price.
The refinery said: "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."
Refinery absorbs costs to protect consumers
Despite higher crude acquisition costs, Dangote Refinery said it deliberately absorbed a significant portion of the additional expenses instead of transferring the full burden to consumers. The company noted that this strategy has helped keep petroleum product prices in Nigeria lower than those in neighbouring countries, even after taxes are considered.
It added that as cheaper crude cargoes gradually enter its refining process, the benefits are being passed on to consumers through phased reductions in petrol prices.
Earlier, the price for aviation fuel (Jet A1) dropped to N1,650 per litre at Dangote Refinery. The new rate represents a N100 or 5.71% reduction from the previous price of N1,750 per litre and is expected to provide relief for airline operators struggling with rising operating costs. The company said the reduction is accompanied by a 30-day interest-free credit facility.
For Nigerian consumers and businesses, the sustained price cuts signal that Dangote Refinery is using its scale to drive down fuel costs, which could ease inflationary pressures and reduce transport costs in the coming weeks.