The Dangote refinery has said that the increase in its ex-depot premium motor spirit (PMS), petrol price was driven by the significant rise in global crude oil prices.
In a statement on Sunday, Anthony Chiejina, the group chief branding and communications officer, explained that crude oil remains the primary input in PMS production, and any fluctuation in its international price directly impacts the cost of the finished product.
On January 17, Dangote refinery informed customers via email that the price of its PMS, also known as petrol, has increased to N955 per litre at the company’s loading gantry.
“At 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,” Chiejina said.
“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, 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.
“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 remain central to our mission.”
Chiejina also said if the refinery passed on the entire increase in crude oil price to the market, the retail price of petrol would have been between N1,150 and N1,200 per litre, compared to the current price of N970.
He expressed the refinery’s gratitude to President Bola Tinubu for introducing the visionary naira-for-crude initiative.
Chiejina noted that the groundbreaking initiative has ensured consistent access to high-quality PMS for Nigerians while insulating them from global oil market volatility.
