Dangote Refinery has addressed concerns regarding the recent increase in the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol. In a statement released on Sunday, the refinery clarified that it is not directly responsible for the price hike, which it attributed to the significant rise in global crude oil prices.
The 650,000 barrels per day refinery explained that fluctuations in global oil prices directly affect the cost of finished products like petrol. The statement further noted that the increase in crude oil prices has led to corresponding changes in the pricing of refined products, which in turn impacts the final cost to consumers.
“While we have made a 5% 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% rise in global crude oil prices,” the refinery stated. The increase in global crude oil prices has seen Brent Crude rise from $70 to $82 in a short period, with an additional premium of about $3 per barrel for Nigerian crude in international markets.
The refinery also made clear that despite the increase, it has taken steps to absorb a significant portion of the cost hikes. “Dangote Refinery has absorbed approximately 50% of the cost increases in the international oil market,” the statement explained. It added that, if the full increase were passed on to consumers, the retail price of petrol could have reached between N1,150 to N1,200 per litre in some locations, significantly higher than the current price of N970 per litre.
In response to the rising costs, Dangote Refinery has maintained the Single-Point Mooring (SPM) ex-vessel price at N895 per litre, which helps to stabilize the cost structure. The refinery also emphasized its commitment to ensuring that all its partners, including Ardova, Heyden, and MRS Holdings, will sell petrol at a retail price of N970 per litre nationwide.
The refinery expressed its determination to shield consumers from the full impact of international price fluctuations. “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 statement read.
Dangote Refinery also reiterated its dedication to providing Nigerians with high-quality fuel at competitive prices. The refinery acknowledged the essential role of affordable fuel for the country’s economy and reaffirmed its commitment to offering the best value to customers.
“We sincerely appreciate 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,” the company added.
Looking ahead, Dangote Refinery committed to greater transparency in its pricing process. It revealed plans to publish its ex-depot price, ex-vessel price, and pump price on a weekly basis, ensuring that consumers are informed and protected from potential exploitation.
The company also expressed gratitude to President Bola Ahmed Tinubu for the introduction of the Naira for Crude Initiative, which it credits with enabling consistent access to high-quality PMS and insulating Nigerian consumers from the volatility of the global oil market.
