Dangote Petroleum Refinery cites the significant rise in global crude oil prices as the reason for the increased ex-depot price of premium motor spirit (PMS).
In a statement released on Sunday, Anthony Chiejina, the group chief branding and communications officer, clarified that crude oil is the main raw material for PMS production, and any changes in its international pricing have a direct effect on the cost of the final product.
On January 17, the Dangote refinery provided this information.
“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 stated that if the refinery had transferred the full increase in crude oil prices to consumers, the retail price of petrol would range from N1,150 to N1,200 per litre, in contrast to the current price of N970.
He expressed appreciation on behalf of the refinery to President Bola Tinubu for implementing the innovative naira-for-crude initiative.
Chiejina highlighted that this pioneering initiative has provided Nigerians with reliable access to high-quality PMS while protecting them from fluctuations in the global oil market.