Dangote Refinery has announced a five per cent increase in the ex-depot price of petrol from N899.50 to N950 per litre due to a significant rise in global crude oil prices, which surged from $70 to $82 per barrel. This adjustment is lower than the 15 per cent increase in crude prices, and the refinery has absorbed about 50 per cent of the cost increases to maintain retail prices at N970 per litre across Nigeria.
Dangote Petroleum Refinery has clarified that the recent adjustment in its ex-depot price of Premium Motor Spirit (Petrol) is directly related to the significant increase in global crude oil prices.
This is as key distribution partners MRS Oil, Heyden, and Ardova have agreed to sell petrol at N970 per litre nationwide.
Group branding and communications officer for the group Anthony Chiejina, who made this known said as crude remains the primary input in the production of PMS, any fluctuation in its international price inevitably impacts the cost of the finished product.
The company said as crude remains the primary input in the production of PMS, any fluctuation in its international price inevitably impacts the cost of the finished product.
According to Dangote Petroleum Refinery, we recognise the critical importance of affordable fuel for all Nigerians, and we remain committed to offering the best value with guaranteed quality to our customers.
“While we have made a five per cent adjustment to our ex-depot price from N899.50 to N950 per litre, it is important to note that this increase is considerably lower than the 15 per cent rise in global crude oil prices, which has seen Brent Crude rise from $70 to $82 in a matter of days, in addition to the premium for Nigerian crude (approximately $3 per barrel) in international markets. Furthermore, Dangote Refinery has maintained the Single-Point Mooring (SPM) ex-vessel price at N895 per litre.”
It added that “all our partners, including Ardova, Heyden, and MRS Holdings, will offer petrol to Nigerians at a retail price of N970 per litre nationwide. We have absorbed the increased logistics costs to guarantee uniform pricing across the 36 states of the federation and the Federal Capital Territory (FCT).
“Dangote Refinery has absorbed approximately 50 per cent of the cost increases in the international oil market.”
Dangote Refinery stated that “this is due to our unwavering commitment to quality and affordability, as well as the ownership of the refinery by Nigerians, which remain central to our mission.
“If Dangote Refinery were to pass on the entire increase in the price of crude oil to the market, the retail price of PMS would be approximately N1,150 to N1,200 per litre in some locations, compared to the current price of N970 per litre.
“We are committed to providing reliable, top-quality petrol to the Nigerian people at competitive prices. In these challenging times, we continue to prioritise the best interests of Nigerians, striving to shield consumers from the full impact of global price volatility while adapting to evolving market conditions.”
The Company appreciated the continued trust and support of Nigerians as we strive to deliver the best value for their money and contribute to the development of a self-sufficient economy that is resilient to international price fluctuations.
“In the interest of transparency and good governance, Dangote Refinery will commence publishing its ex-depot price, ex-vessel price as well as pump price on a weekly basis so that consumers are not exploited.
“We would like to express our gratitude to President Bola Tinubu for the introduction of the visionary naira for the Crude Initiative. This groundbreaking initiative has enabled consistent access to high-quality PMS for all Nigerians, while also insulating the Nigerian consumers from the volatility of the global oil market,” Dangote Refinery added.
