Dangote Addresses Recent Increase in Petrol Prices
By DAYO ADESULU
Dangote Petroleum Refinery has clarified that the recent rise in the ex-depot price of Premium Motor Spirit (PMS) is a direct consequence of the substantial increase in global crude oil prices. As crude oil is the primary raw material for PMS production, any changes in its international pricing will naturally affect the cost of the final product.
The company emphasizes its commitment to providing affordable fuel for Nigerians, maintaining that the recent adjustment of 5%—from N899.50 to N950 per litre—remains significantly lower than the 15% spike in global crude prices, which saw Brent Crude jump from $70 to $82 in just a few days, along with an additional premium of approximately $3 per barrel for Nigerian crude in the international market. Additionally, Dangote Refinery has kept the Single-Point Mooring (SPM) ex-vessel price steady at N895 per litre.
In partnership with Ardova, Heyden, and MRS Holdings, petrol will be available to Nigerians at a retail price of N970 per litre nationwide. The company has absorbed rising logistics costs to ensure consistent pricing across all 36 states and the Federal Capital Territory (FCT).
Dangote Refinery has shouldered around 50% of the international oil market cost increases, demonstrating its commitment to quality and affordability, particularly given that the refinery is owned by Nigerians. If the company were to pass on the complete increase from crude oil prices, the retail price of PMS could reach between N1,150 and N1,200 per litre in some areas, which is significantly higher than the current N970 per litre.
The refinery remains dedicated to delivering reliable, high-quality petrol at competitive prices, particularly during these challenging times, prioritizing the welfare of Nigerians while navigating global market fluctuations.
In a move towards transparency, Dangote Refinery will begin weekly publication of its ex-depot, ex-vessel, and pump prices to prevent consumer exploitation.
The company also expressed gratitude to President Bola Ahmed Tinubu for the innovative Naira for Crude Initiative, which has facilitated steady access to high-quality PMS for all Nigerians and helped protect consumers from the volatility of the global oil market.
