Dangote Petroleum Refinery has clarified the recent increase in the ex-depot price of Premium Motor Spirit (PMS), stating that the adjustment was necessitated by a sharp rise in global crude oil prices.
In a statement released on Friday, the company explained that crude oil remains the primary input in PMS production, and fluctuations in its international price directly impact the cost of the refined product.
The ex-depot price of PMS has been adjusted by 5%, rising from N899.50 to N950 per litre.
The refinery noted that this increase is significantly lower than the 15% surge in crude oil prices, with Brent Crude jumping from $70 to $82 per barrel within days.
Nigerian crude, which commands an additional premium of about $3 per barrel in the global market, further compounded the price pressure. Despite these challenges, Dangote Refinery maintained its Single-Point Mooring (SPM) ex-vessel price at N895 per litre.
“All our partners, including Ardova, Heyden, and MRS Holdings, will sell petrol at a uniform retail price of N970 per litre nationwide. We have absorbed the increased logistics costs to ensure consistency in pricing across the 36 states and the Federal Capital Territory,” the statement read.
The refinery disclosed that it has absorbed approximately 50% of the cost increase resulting from the international oil market.
According to Dangote Refinery, had it passed on the full impact of crude oil price hikes, the retail price of PMS could have risen to between N1,150 and N1,200 per litre.
“We are committed to providing high-quality petrol at competitive prices. Despite global price volatility, our mission remains to shield Nigerian consumers from the full brunt of these increases,” the company stated.
As part of its transparency measures, Dangote Refinery announced plans to commence publishing its ex-depot, ex-vessel, and pump prices weekly to ensure consumers are not exploited.
The company also commended President Bola Ahmed Tinubu for the introduction of the Naira for Crude Initiative, describing it as a transformative policy that ensures consistent access to affordable PMS and protects consumers from the volatility of the global oil market.
Dangote Refinery expressed gratitude to Nigerians for their continued trust and support, pledging to contribute to a self-sufficient and resilient economy amid evolving market conditions.
The move comes at a time when Nigerians are grappling with rising living costs, further intensifying the focus on fuel pricing and its ripple effects on the economy.
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