Dangote Petroleum Refinery has pledged to continue reducing the prices of petroleum products as cheaper crude oil cargoes gradually enter its production cycle, assuring Nigerians that the benefits of declining global crude prices will be reflected in domestic fuel prices.
In a statement issued on Thursday, the refinery's management said its pricing strategy remains guided by fairness, market realities and long-term sustainability, noting that consumers should continue to benefit whenever production costs decline.
According to the refinery, the recent reductions in the ex-depot prices of Premium Motor Spirit (PMS), Automotive Gas Oil (AGO) and Jet A1 aviation fuel are part of a deliberate policy to ensure local fuel prices reflect falling feedstock costs. Since the end of May, the refinery said it has reduced PMS prices by more than ₦200 per litre, slashed diesel prices by ₦300 per litre and cut Jet A1 prices by ₦520 per litre, with the latest petrol price reduction marking the fourth within one month.
The Refinery's management explained that it's pricing model cannot be tied to daily movements in Brent crude because petroleum products are manufactured from crude oil purchased weeks or months earlier. It disclosed that the average landed cost of crude processed in May was $124.80 per barrel, while the average cost for June cargoes declined to $95.25 per barrel, even though Brent crude has recently traded around $71 per barrel.
The refinery said the lower-cost crude now entering its production system provides room for further price reductions in the coming weeks as older, higher-priced inventories are gradually exhausted. It added that crude acquisition costs also include freight, logistics and other commercial charges beyond the international benchmark price.
Dangote also disclosed that it had absorbed a significant portion of previous increases in crude costs instead of passing the entire burden to consumers, a move it said helped stabilise the domestic fuel market, moderate inflationary pressures and ensure uninterrupted product supply during periods of heightened global price volatility.
Reaffirming its commitment to the Nigerian market, the management said it would continue to pursue fair, responsible and sustainable pricing, while supporting the Federal Government's drive for energy security through domestic refining and reducing the country's dependence on imported petroleum products.
The refinery expressed confidence that as cheaper crude cargoes increasingly dominate its production mix, Nigerians will continue to benefit from more competitive fuel prices, provided international market conditions remain favourable.