Dangote Petroleum Refinery said 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.
The ex-depot price of petrol has been adjusted from N899.50 to N950 per litre, marking a 5% increase. However, Dangote Refinery emphasised that this increase is notably lower than the 15% rise in global crude oil prices. Over a span of just a few days, Brent Crude prices have climbed from $70 to $82 per barrel, with additional premiums for Nigerian crude adding approximately $3 per barrel.
Dangote Petroleum Refinery, in a statement, also clarified that it has chosen to absorb part of the increased logistics costs, in a bid to maintain consistent pricing across Nigeria. The refinery also kept the Single-Point Mooring (SPM) ex-vessel price stable at N895 per litre, a move aimed at reducing the impact on consumers.
In an effort to keep prices manageable, Dangote Refinery stated that it has absorbed nearly 50% of the price hikes in international crude oil markets, ensuring that the retail price of PMS nationwide will remain at N970 per litre. Without this intervention, the company noted that the retail price could have surged to as high as N1,150 to N1,200 per litre in certain locations, a stark contrast to the current price.
The company also acknowledged its partners, including Ardova, Heyden, and MRS Holdings, would retail petrol at the same price of N970 per litre nationwide, aimed at preventing price disparities across different regions and ensuring uniform pricing across all 36 states and the Federal Capital Territory (FCT).
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“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% of the cost increases in the international oil market. This is due to our unwavering commitment to quality and affordability, as well as the ownership of the refinery by Nigerians, which remains 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,” it said.
The Refinery emphasised its ongoing commitment to providing Nigerians with affordable and high-quality fuel. The statement also stressed its dedication to transparency, with 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 price exploitation.
“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. 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,” it said.
It expressed appreciation for the support of President Bola Ahmed Tinubu’s administration and the introduction of the Naira for Crude Initiative. The initiative, which promotes local purchasing of crude oil with the naira currency, has been credited with providing Nigerians with consistent access to high-quality PMS while shielding them from the fluctuations of the international oil market.
“We would like to express our gratitude to President Bola Ahmed Tinubu for the introduction of the visionary Naira for 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,” it added.
It reiterated its commitment to providing reliable, top-quality petrol to Nigerians at competitive prices. It added that it will 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.
