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Dangote Petroleum Refinery has justified the reasons behind the recent increase in the price of Premium Motor Spirit (PMS), attributing it to a significant rise in global crude oil prices.
The refinery, in a statement on Sunday, emphasised that fluctuations in global crude oil prices directly affect the cost of producing PMS, with the latest price hike linked to a sharp 15% rise in Brent Crude prices from $70 to $82 per barrel.
The refinery confirmed a 5% adjustment in its ex-depot price, raising it from N899.50 to N950 per litre. Despite the surge in global prices, Dangote Refinery has made efforts to minimize the impact on Nigerian consumers, keeping the retail price of petrol at N970 per litre nationwide. This price, offered through retail partners including Ardova, Heyden, and MRS Holdings, is significantly lower than the potential price of N1,150 to N1,200 per litre, which could have been charged if the full increase in crude prices was passed onto consumers.
“We understand the importance of affordable fuel for all Nigerians,” said the management of Dangote Refinery. “While we have made a modest adjustment, we have absorbed around 50% of the increased costs in order to shield the Nigerian people from the full impact of global price volatility.”
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Despite the challenges posed by rising global oil prices, the refinery has maintained its ex-vessel price at N895 per litre and has worked diligently to ensure uniform pricing across Nigeria. Dangote has also taken on additional logistics costs to ensure the price of N970 per litre is consistent in all 36 states and the Federal Capital Territory (FCT).
In a commitment to transparency, Dangote Refinery said it will now publish its ex-depot price, ex-vessel price and pump price on a weekly basis to ensure that consumers are well-informed and protected from any potential exploitation.
Dangote Refinery also expressed gratitude to President Bola Ahmed Tinubu for the introduction of the Naira for Crude Initiative, which has played a key role in stabilising fuel prices in the country and insulating consumers from the fluctuations in the international oil market.
“We remain dedicated to providing high-quality, affordable fuel to Nigerians,” the statement concluded, reinforcing the refinery’s commitment to ensuring that Nigerians continue to receive reliable and competitively priced petrol, even amidst global market pressures.
