Dangote Petroleum Refinery has announced a 5% adjustment in the ex-depot price of Premium Motor Spirit (PMS).
In a statement released on Sunday, January 19, the refinery said its ex-depot price has been increased from N899.50 to N950 per litre.
Dangote refinery explains petrol price increase
Photo credit: Bloomberg/contributor
Source: Getty Images
Also, petrol prices at filling stations will now stand at N970 per litre nationwide.
Henzodaily.ng earlier reported that the refinery partnered with MRS to sell fuel at N935 to Nigerians.
Why the petrol price
In the statement, Dangote Refinery clarified that the price increase was necessitated by a sharp rise in Brent Crude prices, which climbed from $70 to $82 per barrel within days.
It explained that Nigerian crude, typically attracting a premium of around $3 per barrel, further adds to production costs.
Part of the statement reads:
“We wish to clarify that the recent adjustment in our ex-depot price of Premium Motor Spirit (Petrol) is directly related to the significant increase in global crude oil prices.
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“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”
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.
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).”
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Dangote refinery defends new price
Dangote refinery defended the price increase while stressing that it absorbed approximately 50% of the cost increases.
The statement added:
“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. 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 N1,150 to N1,200 per litre in some locations, compared to the current price of N970 per litre.”
“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.”
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The company also lauded President Bola Ahmed Tinubu’s “Naira for Crude Initiative,” describing it as a transformative policy that has bolstered consistent access to affordable, high-quality fuel.
It continued:
“We sincerely appreciate the continued trust and support of Nigerians as we strive to deliver the best value for their money and contribute to developing a self-sufficient economy resilient to international price fluctuations.
“We would like to express our gratitude to President Bola Ahmed Tinubu for the introduction of the visionary 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.”
To promote transparency and consumer confidence, Dangote Refinery said it plans to publish weekly updates on ex-depot prices, ex-vessel prices, and pump prices
The statement concluded:
“In the interest of transparency and good governance, Dangote Refinery will commence publishing its ex-depot price, ex-vessel price as well as pump price on a weekly basis so that consumers are not exploited.
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Source: Henzodaily.ng