Dangote Petroleum Refinery yesterday directed its retail partners to increase the pump price of Premium Motor Spirit (PMS) or petrol from N935 per litre to N970 per litre.
In a statement, Dangote Refinery cited the rise of crude oil cost in the international market from $70 to $82 per barrel as the reason for the increase.
The company stated that it had absorbed approximately 50% of the present increase in the petrol market before arriving at the N35 increase 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),” The Refinery stated.
According to the company, if it 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 increased price of N970 per litre.
“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,” the company stated.
Dangote said the recent adjustment in the ex-depot price of petrol was directly related to the significant increase in global crude oil prices.
According to the company, as crude oil remains the primary input in the production of PMS, any fluctuation in its international price inevitably impacts the cost of the finished product.
Stressing the importance of affordability, the refinery said: “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 5.0% 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”.
The company further reiterated its commitment to providing reliable, top-quality petrol to the Nigerian people at competitive prices.
“The refinery is dedicated to serving the best interests of Nigerians, mitigating the impact of global price volatility on consumers and adapting to the evolving market landscape.”