The Dangote Refinery has claimed that its recent adjustment in the price of Premium Motor Spirit (PMS), commonly known as petrol, is due to the rising cost of global crude oil.
The refinery has increased its ex-depot price from ₦899 to ₦955 per litre.
In a statement on Sunday, they explained the factors that led to the hike.
It read: “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.”
It added that while the global crude oil price had risen by 15%, from $70 to $82 per barrel, Dangote Refinery’s adjustment reflected only a 5% increase. The refinery also noted that the premium for Nigerian crude, which stands at about $3 per barrel, has further influenced pricing.
Despite these challenges, the refinery has maintained its Single-Point Mooring (SPM) ex-vessel price at ₦895 per litre.
The refinery announced that its partners, including Ardova, Heyden, and MRS Holdings, would retail petrol at ₦970 per litre nationwide. It explained that it has absorbed increased logistics costs to ensure uniform pricing across the country, including the Federal Capital Territory (FCT).
The statement continued: “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 ₦1,150 to ₦1,200 per litre in some locations, compared to the current price of ₦970 per litre.”
The refinery reiterated its commitment to affordability, noting that it has absorbed about 50% of the cost increases in the international oil market to shield Nigerians from the full impact of global price volatility.
“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,” the statement noted.
