Filling stations of major oil marketers have adjusted their pump prices to the new rate for Dangote refinery petrolThe three marketers, MRS, Ardova, and Heyden, partnered with the Dangote refinery to ensure that petrol prices are more affordableChanges in global oil prices have forced the Dangote refinery to increase its petrol prices for marketers
Henzodaily.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Dangote Refinery has announced a new retail price for Premium Motor Spirit (PMS), also known as petrol, in partnership with key distribution partners MRS Oil, Heyden, and Ardova.
In a statement released on Sunday, January 19, Dangote confirmed that the marketers will now sell its petrol at N970 per litre nationwide, an increase from N935 per litre.
New fuel prices emerge at filling stations.
Photo credit: Bloomberg/contributor
Source: Getty Images
Also, the Dangote refinery announced an increase in ex-depot prices from N899.50 to N950 per litre.
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Dangote refinery releases statement, confirms new petrol prices
Ex-depot price is when a product is sold to marketers at a depot.
New fuel prices
Dangote Refinery explained that the price adjustments are due to the global price of crude oil, which has pushed up production costs for petrol across the world.
However, the refinery has assured Nigerian consumers that it has absorbed much of these costs to maintain a uniform price across all 36 states of the federation and the Federal Capital Territory (FCT).
He noted that the current prices are relatively cheaper; if all costs were accounted for, the price could rise to N1,200, BusinessDay reports.
Part of the statement reads:
“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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Filling stations announce new fuel prices nationwide, marketers identify causes for new price
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.”
Checks by Henzodaily.ng at Ardova, MRS, and Heyden filling stations showed that the new prices were effective as of Monday, January 20.
Other filling stations sell above N1,000
Henzodaily.ng reported that petrol prices at filling stations belonging to Independent Petroleum Marketers Association of Nigeria (IPMAN) members are now being sold above N1,000.
Checks by Henzodaily.ng show that filling stations have increased their pump prices to between N1,050 and N1,150 per litre.
Read also
Fuel prices set to rise as Dangote Refinery increases cost to N955/litre
The new prices will increase from the previous average of N920 to N950 per litre.
Aside from the price change, many filling stations in Lagos were also closed, with workers standing around.
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Source: Henzodaily.ng