Fuel Hike: Why Dangote Petroleum Refinery raises PMS price –Management

*Dangote Petroleum Refinery assures Nigerians energy consumers that three of its partners – Ardova, Heyden, and MRS Holdings – will sell Premium Motor Spirit, otherwise known as petrol, for N970 per litre nationwide despite the recent increase in the ex-depot price of the product

Isola Moses | ConsumerConnect

The Dangote Petroleum Refinery has clarified that the recent adjustment in the company’s ex-depot price of Premium Motor Spirit, also known as petrol, is directly related to the significant increase in global crude oil prices.

Dangote Group noted they as crude remains the primary input in the production of PMS, any fluctuation in its international price inevitably impacts the retail cost of the finished petroleum product in the West African country.

Mr. Anthony Chiejina, Group Chief Branding and Communications Officer Dangote Group, in a statement Sunday, January 19, 2025, explained: “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 percent 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 percent 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.”

Chiejina also stated that Dangote Petroleum Refinery has maintained the Single-Point Mooring (SPM) ex-vessel price at N895 per litre.

He said: “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 Group further noted: “Dangote Refinery has absorbed approximately 50 percent 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.”

According to the Spokesman, 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 N1,150 to N1,200 per litre in some locations, compared to the current price of N970 per litre.

Dangote Petroleum Refinery averred: “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.”

The statement noted: “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, Dangote Refinery will commence publishing its ex-depot price, ex-vessel price as well as pump price on a weekly basis so that consumers are not exploited.”

Chiejina said the company commended President Bola Ahmed Tinubu for his administration’s introduction of the Naira for Crude initiative in the downstream petroleum sector.

“We would like to express our gratitude to President Bola Ahmed Tinubu for the introduction of the visionary 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,” stated Dangote Refinery.