Dangote Petroleum Refinery has defended its petroleum product pricing strategy, insisting that recent reductions in fuel prices reflect its commitment to easing the burden on Nigerians despite the high cost of crude oil used in refining. Africans& Diaspora
Dangote refinery, in a statement on Thursday, June 2, 2026, said it has reduced the ex-depot price of Premium Motor Spirit (PMS), fondly called petrol, by over N200 per litre since May 30, 2026, while slashing the prices of Automotive Gas Oil (diesel) by N300 per litre and Jet A1 aviation fuel by N520 per litre.
The refinery described the latest N50 per litre cut in PMS as its fourth downward price review in one month, stressing that the reductions were made even though the crude oil being processed was purchased at significantly higher prices than current international market rates.
According to the company, there is a misconception that local refinery prices should immediately mirror movements in global crude oil prices.
It explained that crude oil is sourced weeks or months before refining under commercial agreements linked to monthly average prices, rather than daily spot market quotations.
The refinery disclosed that the average landed cost of crude processed was about $124.80 per barrel in May and $95.25 per barrel in June, compared with the current international benchmark of approximately $71.01 per barrel.
Dangote refinery added that its crude is purchased on a Dated Brent pricing formula with additional market premiums, freight and logistics costs, resulting in higher actual procurement costs than the benchmark prices commonly reported.
Despite the increased feedstock costs, Dangote refinery said it deliberately absorbed much of the additional expense instead of transferring it to consumers, a move it said was aimed at supporting market stability, moderating inflation and protecting Nigerians from sharp fluctuations in global energy prices.
The refinery expressed optimism that fuel prices would continue to moderate as lower-cost crude inventories gradually replace more expensive stock, provided international market conditions remain favourable.
It also maintained that Nigeria currently enjoys lower petroleum product prices than many neighbouring countries, even after taxes are taken into account.
The refinery said its operations are strengthening the country’s energy security by meeting domestic demand, reducing reliance on imported fuel, conserving foreign exchange and improving price stability.
Reaffirming its commitment to consumers, Dangote refinery pledged to continue delivering high-quality petroleum products at competitive prices while contributing to Nigeria’s economic growth and the long-term sustainability of Africa’s largest refinery.
