The Dangote Petroleum Refinery has attributed the recent increase in its ex-depot price for Premium Motor Spirit (PMS) to the sharp rise in global crude oil prices. In a statement issued recently, Anthony Chiejina, the Group Chief Branding and Communications Officer, emphasized that crude oil is the primary input in PMS production. Therefore, fluctuations in international crude prices directly affect the cost of refined fuel.
The refinery recently notified customers via email of a 5% adjustment in its ex-depot PMS price, raising it from ₦899.50 to ₦950 per litre. This price applies to the company’s loading gantry. Despite the adjustment, Chiejina pointed out that the increase is significantly lower than the 15% surge in global crude oil prices, with Brent Crude rising from $70 to $82 per barrel. Additionally, Nigerian crude attracts a premium of approximately $3 per barrel in international markets.
Chiejina also highlighted that the refinery has maintained the Single-Point Mooring (SPM) ex-vessel price at ₦895 per litre. To ensure nationwide pricing uniformity, Dangote Refinery has absorbed increased logistics costs, allowing partners such as Ardova, Heyden, and MRS Holdings to retail petrol at ₦970 per litre across all 36 states and the Federal Capital Territory (FCT).
According to Chiejina, Dangote Refinery has absorbed nearly 50% of the additional costs resulting from the international oil market’s volatility. This approach underscores the refinery’s commitment to providing Nigerians with high-quality and affordable fuel, while prioritizing the interests of its Nigerian stakeholders.
“If the refinery had passed the entire increase in crude oil prices onto the market, the retail price of petrol would have ranged between ₦1,150 and ₦1,200 per litre. Instead, the current price remains at ₦970 per litre,” Chiejina explained.
Chiejina commended President Bola Tinubu for introducing the “naira-for-crude” initiative, describing it as visionary. He noted that the initiative has guaranteed consistent access to high-quality PMS for Nigerians while shielding them from the full impact of global oil market volatility.
