Dangote Refinery has explained why it recently adjusted the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol from N899 to N955 per litre.
Dangote Refinery announced the increase in price of petrol on 17 January.
Explaining the reason for the hike, Anthony Echiejina, Head of Corporate Communications, Dangote Industries, in a statement on Sunday in Lagos attributed it to the increase in global crude oil prices.
The Dangote group spokesperson added that the fluctuation in global crude prices impacted the cost of producing PMS, as crude oil remained the primary input in petrol production.
“Any change in international crude prices inevitably affects the cost of the finished product,” Echiejina said.
He added that the five per cent increase ex-depot price by Dangote Refinery is still significantly lower than the 15 per cent spike in global crude oil prices, which has seen Brent Crude rise from 70 dollars to 82 dollars per barrel.
Echiejina emphasised that Dangote Refinery had absorbed roughly 50 per cent of the cost increases, resulting from the rise in global crude prices.
He added that the refinery had also maintained the Single-Point Mooring (SPM) ex-vessel price at N895 per litre.
“As a result, all Dangote Refinery partners, including Ardova, Heyden, and MRS Holdings, will offer petrol at a retail price of N970 per litre across the nation.
“Despite the rise in global crude prices, Dangote Refinery has worked to ensure minimal impact on Nigerian consumers.
“This is by absorbing increased logistics costs, aiming for uniform pricing across all 36 states and the Federal Capital Territory (FCT).
“If we were to pass on the full increase in crude oil prices, the retail price of PMS could have risen to as much as N1,150 to N1,200 per litre in some areas, compared to the current N970 per litre,” Echiejina added.
He said that Dangote Refinery remained committed to providing high-quality petrol at competitive prices, despite the challenges posed by global oil market volatility.
Echiejina noted the company’s priority is to shield Nigerians from the full impact of these fluctuations while continuing to support the nation’s economic growth and self-sufficiency.
He said that in an effort to maintain transparency, Dangote Refinery had announced it would publish its ex-depot price, ex-vessel price and pump price on a weekly basis.
This, he maintained, was to ensure consumers were informed and protected from price exploitation.
According to him, the refinery appreciates the President Bola Tinubu’s Naira for Crude Initiative, which has helped ensure consistent access to quality PMS for Nigerians while mitigating the impact of global market shifts.
Echiejina thanked Nigerians for their continued support, as Dangote Refinery works to provide the best value for money and contribute to the growth of a more resilient Nigerian economy.
