Dangote Petroleum Refinery has taken significant steps to protect Nigerian consumers from the impact of rising global crude oil prices, absorbing a substantial portion of the cost increases and ensuring petrol prices remain relatively stable in the country.
The refinery recently announced an adjustment in the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, from N899.50 to N950 per litre, marking a 5% increase. However, Dangote Refinery emphasised that this price hike is far lower than the 15% surge in global crude oil prices, which have jumped from $70 to $82 per barrel in recent days. Additionally, Nigerian crude oil has added an extra $3 per barrel premium to the cost.
In response to this surge, Dangote Refinery clarified that it has absorbed a significant portion of the increased logistics and refining costs. The refinery has kept the Single-Point Mooring (SPM) ex-vessel price stable at N895 per litre, a move designed to prevent further strain on consumers already feeling the effects of inflation.
Without this intervention, the retail price of PMS in Nigeria could have surged to as high as N1,150 to N1,200 per litre in some regions. However, the refinery’s decision ensures that the nationwide retail price remains capped at N970 per litre, offering much-needed relief to Nigerian consumers.
“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),” it said
Dangote Petroleum Refinery emphasised its unwavering dedication to providing affordable, high-quality fuel to Nigerians, underscoring that the refinery’s ownership by Nigerians remains central to its mission. “We have absorbed approximately 50% of the cost increases in the international oil market,” the statement reads. “This is due to our commitment to quality, affordability, and our focus on the best interests of Nigerians.”
The company also expressed its ongoing commitment to transparency, revealing plans to publish its ex-depot, ex-vessel, and pump prices on a weekly basis. This initiative is aimed at keeping consumers informed and protected from price exploitation in a volatile global market.
Dangote Refinery noted that the introduction of the Naira for Crude Initiative by President Bola Ahmed Tinubu, which facilitated the purchase of crude oil using Naira, insulating the country’s fuel market from some of the worst impacts of global oil 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.
We sincerely appreciate the continued trust and support of Nigerians as we strive 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,” it added.
Dangote Petroleum Refinery said it is committed to Nigeria’s ongoing efforts toward self-sufficiency and resilience in the face of international economic pressures. The company reiterated that it would continue prioritising Nigerians’ best interests, ensuring that consumers are shielded from the volatility of the global oil market, while adapting to evolving market conditions.
Recent Adjustment in Ex-Depot Price of PMS
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. 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).
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.
We sincerely appreciate the continued trust and support of Nigerians as we strive 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.
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.
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.
Comment here