Emmanuel OchayiDangote Petroleum Refinery has explained that the recent increase in the ex-depot price of Premium Motor Spirit (PMS) is due to the rise in global crude oil prices. The company emphasised that this adjustment is a direct result of higher costs for raw materials.
“We want to clarify that this adjustment is tied to the significant rise in global crude oil prices. As crude oil remains the main input in PMS production, any increase in its international price inevitably affects the cost of the finished product,” said Anthony Chiejina, the Group Chief Branding and Communication Officer.
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The refinery pointed out that although the price of crude oil has surged by about 15%, the price of petrol at Dangote Refinery has been adjusted by only 5%. “Brent Crude rose from $70 to $82 within a few days, and Nigerian crude is also selling at a premium of $3 per barrel. Despite this, we have kept the ex-depot price of PMS as low as possible,” Chiejina added.
Dangote Refinery has kept the ex-vessel price at N895 per litre, despite the rising global oil prices. The recent adjustment sees the ex-depot price go from N899.50 to N950 per litre, but this increase remains significantly lower than the jump in international oil prices. The refinery is committed to maintaining reasonable fuel prices in Nigeria, despite the external challenges.
A Commitment to Nigerians
Chiejina further explained, “At Dangote Refinery, we understand the critical importance of affordable fuel for Nigerians. We remain committed to providing the best value and quality to our customers. We have taken steps to absorb some of the costs associated with the global price increases.”
The company stated that it has absorbed approximately 50% of the cost increases caused by the surge in global oil prices. As a result, the retail price of petrol in Nigeria is being kept lower than it would have been if all price increases were passed on to consumers.
“We are doing everything we can to minimize the impact of global price changes on Nigerians. If we were to pass on the full price increase, the retail price of petrol would be N1,150 to N1,200 per litre, depending on location. However, we have chosen to sell it at N970 per litre nationwide,” said Chiejina.
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Uniform Pricing Across Nigeria
Dangote confirmed that all its partners, including Ardova, Heyden, and MRS Holdings, will sell petrol at the same retail price of N970 per litre across the country, including the Federal Capital Territory (FCT). The company has absorbed the increased logistics costs to ensure uniform pricing across all 36 states.
“We are committed to ensuring that Nigerians receive petrol at affordable rates, despite the rising cost of crude oil in the global market,” said Chiejina. “Dangote Refinery has always placed a premium on quality and affordability, and we will continue to do so.”
Dangote Refinery’s Mission
The Company’s management also reiterated that the refinery’s ownership by Nigerians plays a crucial role in its mission.
“Our commitment to the Nigerian people remains central to everything we do. We will continue providing reliable, top-quality petrol at competitive prices for all Nigerians,” Chiejina concluded.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
