Dangote Reduces Petrol Price by N200, Confirms New Rate
- Dangote Refinery has reduced its ex-depot petrol price for the fourth time in one month, cutting prices by more than N200 per litre
- The refinery said the latest reduction reflects lower crude procurement costs rather than daily movements in global oil prices
- Dangote hints that more petrol price cuts could follow as cheaper crude oil inventories gradually enter its production cycle
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Dangote Petroleum Refinery has slashed the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, by more than N200 per litre since May 30, 2026.
The most recent is an N50 reduction announced on July 2, 2026, when the ex-depot price was reduced from N1,125 to N1,075.
Source: Getty Images
Ex-depot price refers to the amount refineries charge petroleum marketers before transportation, distribution and retail sales at filling stations.
Dangote explains fresh petrol price cut
In a statement, the refinery said the latest reduction to N1, 075 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 explained that crude oil used for refining is typically purchased weeks or months before processing under commercial contracts linked to monthly average prices, meaning 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.
Source: Getty Images
More petrol price cuts expected
The refinery said 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, the Nation reports.
Dangote also said it absorbed a significant portion of the recent increase in crude oil costs rather than passing the full burden to consumers, a move it said helped stabilise domestic fuel prices and reduce inflationary pressures.
The refinery added 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.
10 states with the highest petrol prices
Earlier, Legit.ng reported that the National Bureau of Statistics (NBS) has revealed that the average retail price paid by consumers for Premium Motor Spirit (PMS), commonly known as petrol, stood at N1,288.54 in March 2026.
This represents 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).
Source: Legit.ng
