Dangote refinery on Sunday said the recent adjustment in its ex-depot of petrol is directly related to the significant increase in global crude oil prices.
Last Friday, the Dangote refinery announced an upward adjustment in the gantry price of petrol for marketers.
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According to the company, at quantities ranging from 2 million to 4.99 million litres, customers will now pay N955 per litre, up from N899.50. However, for 5 million litres and above, the new price is N950 per litre, up from N895.
On Sunday, the company’s Group Chief Branding and Communication Officer, Anthony Chiejina, in a statement explained that as crude oil remains the primary input in the production of petrol, any fluctuation in its international price inevitably impacts the cost of the finished product.
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Mr Chiejina stated that the company has made a 5 per cent adjustment to its ex-depot price, from N899.50 to N950 per litre. However, he noted that this increase is considerably lower than the 15 per cent rise in global crude oil prices.
“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 per cent 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 per cent 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,” he said.
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Furthermore, he said the 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),” he added.
According to him, Dangote Refinery has absorbed approximately 50 per cent of the cost increases in the international oil market.
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This, he said, is due to its unwavering commitment to quality and affordability, as well as the ownership of the refinery by Nigerians, which remains central to its mission.
Mr Chiejina said if Dangote Refinery were to pass on the entire increase in the price of crude oil to the market, the retail price of petrol 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, he said Dangote Refinery will now commence publishing its ex-depot price, ex-vessel price as well as pump price on a weekly basis so that consumers are not exploited.
The company expressed its gratitude to President Bola Tinubu for the introduction of the 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,” he said.
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