Dangote Petroleum Refinery has clarified that the recent adjustment in the price of Premium Motor Spirit (PMS), otherwise known as petrol, was in direct relation to the significant increase in global crude oil prices.
Dangote in a statement, on Sunday, said that crude remained the primary input in the production of PMS, saying that any fluctuation in its international price would inevitably impacts the cost of the finished product.
The company said that it recognised the critical importance of affordable fuel for all Nigerians and remain committed to offering the best value with guaranteed quality to its customers.
It expressed that the company had only made a 5 percent adjustment to its ex-depot price from N899.50 to N950 per litre despite the global increase of 15 percent in global crude oil prices.
The price of brent crude had increased from $70 to $82 in the last few days, in addition to the premium for Nigerian crude (approximately $3 per barrel) in international markets.
It stressed that the company had maintained the Single-Point Mooring (SPM) ex-vessel price at N895 per litre, while its partners, including Ardova, Heyden and MRS Holdings, would continue to offer petrol to Nigerians at a retail price of N970 per litre nationwide.
Dangote said that it had absorbed 50 percent increase in logistics costs to guarantee uniform pricing across the 36 states of the federation and the Federal Capital Territory (FCT).
The statement said: “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.
“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.”
The company insisted that it was committed to providing reliable, top-quality petrol to the Nigerian people at competitive prices, stressing that it would 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.
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