Victor EzejaDangote Refinery has clarified the recent increase in price of its Premium Motor Spirit (PMS) also known as petrol.
Prime Business Africa had reported that the refinery announced an increase of its petrol price from ₦899.50 to ₦955 per litre.
Join our WhatsApp ChannelThe move triggered reactions, with reports indicating that the increase has led to retail price of ₦1,150 at the filling stations, depending on the area.
Reacting to this, Dangote, in a statement by its Group Chief Branding and Communication Officer, Anthony Chiejina, said the recent adjustment of its ex-depot price of Petrol was due to the significant increase in global crude oil prices. “As crude remains the primary input in the production of PMS, any fluctuation in its international price inevitably impacts the cost of the finished product,” Chiejina explained.
He said the Dangote Petroleum Refinery, recognises the critical importance of affordable fuel for all Nigerians, and remains committed to offering the best value with guaranteed quality to customers.
He clarified that Dangote Refinery’s ex-depot price increase from ₦899.50 to ₦950 per litre, which is 5 per cent, is lower than the 15 per cent rise in global crude oil prices. It said Brent Crude rose from $70 to $82 in a matter of days, in addition to the premium for Nigerian crude (which is approximately $3 per barrel) in international markets. “Furthermore, Dangote Refinery has maintained the Single-Point Mooring (SPM) ex-vessel price at ₦895 per litre.”
The statement said that based on prevailing cost, Dangote Refinery has absorbed approximately 50 per cent of the cost increases in the international oil market because of its “unwavering commitment to quality and affordability, as well as the ownership of the refinery by Nigerians, which remain central to our mission.”
“If Dangote Refinery were to pass on the entire increase in the price of crude oil to the market, the retail price of PMS would be approximately ₦1,150 to ₦1,200 per litre in some locations, compared to the current price of N970 per litre,” it added.
The company further stated that all its partners, including Ardova, Heyden, and MRS Holdings, offer petrol to Nigerians at a retail price of ₦970 per litre nationwide, adding that it has also “absorbed the increased logistics costs to guarantee uniform pricing across the 36 states of the federation and the Federal Capital Territory (FCT).”
“We are committed to providing reliable, top-quality petrol to the Nigerian people at competitive prices. In these challenging times, we continue to prioritise the best interests of Nigerians, striving to shield consumers from the full impact of global price volatility while adapting to evolving market conditions.”
It expressed appreciation to Nigerians for their continued trust and support as it strives to deliver the best value for their money and contribute to the development of a self-sufficient economy that is resilient to international price fluctuations.
The company further stated that in the interest of transparency, it will begin to publish its ex-depot price, ex-vessel price as well as pump price on a weekly basis to prevent exploitation of consumers.
The company thanked President Bola Ahmed Tinubu for initiating the Naira for Crude Initiative. “This groundbreaking initiative has enabled consistent access to high-quality PMS for all Nigerians, while also insulating the Nigerian consumers from the volatility of the global oil market,” the refinery stated.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
