Dangote Clarifies: Recent Fuel Price Increase Linked to Global Oil Price Increase
Dangote Petroleum Refinery has explained that the recent rise in the ex-depot price of Premium Motor Spirit (PMS) is a direct result of the sharp increase in global crude oil prices. As crude oil is the primary component in PMS production, any changes in its international price naturally affect the cost of the final product.
While Dangote Refinery recognizes the importance of affordable fuel for Nigerians, they remain committed to offering high-quality fuel at competitive prices. The ex-depot price has been adjusted by 5%, from N899.50 to N950 per litre. However, this increase is far below the 15% rise in global crude oil prices, with Brent Crude prices jumping from $70 to $82 in just a few days, along with an additional premium for Nigerian crude.
Despite this rise in global oil prices, Dangote Refinery has kept the Single-Point Mooring (SPM) ex-vessel price at N895 per litre. In partnership with companies like Ardova, Heyden, and MRS Holdings, retail prices across Nigeria will remain at N970 per litre, and Dangote has absorbed the increased logistics costs to ensure uniform pricing across the 36 states and the Federal Capital Territory (FCT).
Dangote Refinery has shouldered approximately 50% of the cost increases caused by the rise in crude oil prices. If the refinery had passed on the full increase, retail prices could have soared to as high as N1,150 to N1,200 per litre in certain regions, compared to the current price of N970 per litre.
The refinery reaffirms its commitment to providing high-quality petrol at affordable rates while shielding Nigerian consumers from the full impact of global oil price fluctuations. In line with this, Dangote Refinery will begin publishing weekly updates on its ex-depot and ex-vessel prices, as well as the pump price, to promote transparency and prevent exploitation.
Dangote Refinery also expressed appreciation for the Naira for Crude Initiative introduced by President Bola Ahmed Tinubu, which has helped secure consistent access to quality fuel for Nigerians while minimizing the impact of global market
volatility.
