Dangote Petroleum Refinery has slashed the ex-depot price of Premium Motor Spirit (PMS) for the fourth time in one month, taking cumulative reductions to more than N200 per litre and signalling that further price cuts may be on the way as cheaper crude oil cargoes begin to replace expensive inventories.
The latest N50 per litre reduction comes as international crude oil prices have retreated sharply from their recent highs, allowing Africa’s largest refinery to gradually pass lower feedstock costs on to consumers after months of absorbing elevated crude procurement expenses.
In a detailed statement issued late Wednesday, the refinery said the latest adjustment forms part of a phased pricing strategy anchored on actual production economics rather than daily movements in international oil benchmarks.
“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,” the company said.
The latest reduction strengthens competition in Nigeria’s deregulated downstream petroleum market, where marketers have increasingly adjusted pump prices in response to changes in refinery ex-depot prices.
