Dangote Petroleum Refinery has explained that the recent rise in the price of Premium Motor Spirit (PMS) is due to the sharp increase in global crude oil prices. However, the company assured Nigerians that it is absorbing 50% of the price hike to help reduce the impact on consumers.
The refinery recently adjusted its ex-depot price of petrol from N899.50 to N950 per litre, a 5% increase. However, Dangote stated that this price increase is significantly lower than the 15% rise in global crude oil prices.
In just a few days, the price of Brent Crude oil has surged from $70 to $82 per barrel, with additional premiums for Nigerian crude adding about $3 per barrel.
A statement issued by Dangote’s Spokesperson, Anthony Chiejina, on Monday, also clarified that the refinery has decided to absorb part of the increased logistics costs to maintain consistent pricing across Nigeria. The refinery kept its Single-Point Mooring (SPM) ex-vessel price stable at N895 per litre to further ease the burden on consumers.
Without this intervention, the refinery noted that the retail price of petrol could have risen to as high as N1,150 to N1,200 per litre in some locations, compared to the current price of N970 per litre.
Dangote also stated that its partners, including Ardova, Heyden, and MRS Holdings, will also retail petrol at N970 per litre nationwide, ensuring no price disparities across the country’s 36 states and the Federal Capital Territory (FCT).
The statement read: “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 ensure uniform pricing across the 36 states of the federation and the FCT.”
“Dangote Refinery has absorbed about 50% of the cost increases from the international oil market. This decision reflects our commitment to quality, affordability, and the fact that the refinery is owned by Nigerians. If we passed on the full increase in crude oil prices to the market, the retail price of PMS could have risen to N1,150 to N1,200 per litre in some areas, instead of the current N970 per litre.”
The refinery reiterated its commitment to providing affordable, high-quality fuel to Nigerians and promised greater transparency. It plans to publish its ex-depot price, ex-vessel price, and pump price weekly to ensure consumers are well-informed and protected from price exploitation.
“We remain focused on delivering reliable, top-quality petrol at competitive prices. In these challenging times, we continue to prioritize the best interests of Nigerians, shielding them from the full impact of global price fluctuations while adjusting to market conditions. We deeply appreciate the trust and support of Nigerians as we strive to offer the best value and contribute to a self-sufficient, resilient economy,” the statement concluded.
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