Lagos-based Dangote Refinery has attributed the recent hike in the price of Premium Motor Spirit (PMS) to rising global crude oil prices.
In a statement issued by the spokesperson of Dangote Group, Anthony Chiejina, the company explained that the increase in petrol prices was driven by a 15% surge in global crude oil prices, rising from $70 to $82 within a few days.
Despite the price hike, Chiejina emphasized that the refinery has maintained the Single-Point Mooring (SPM) ex-vessel price at N895 per litre to keep prices as low as possible for consumers.
Over the weekend, petrol prices in Nigeria rose from around N950 to over N1,000, prompting speculation that the Dangote Refinery was responsible for the increase.
In response, the company stated that it had absorbed nearly 50% of the price fluctuations in the market to ensure affordability.
“While we have made a 5% 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% 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.
“Furthermore, Dangote Refinery has maintained the Single-Point Mooring (SPM) ex-vessel price at N895 per litre,” the statement read.
Partners to sell at N970
The $20 billion refinery also assured Nigerians that its partners, including MRS Holdings, Heyden, and Ardova, will continue to sell its products at a discounted price of N970 per litre.
The statement further noted that Dangote Refinery has absorbed the rising logistics costs to make petrol affordable across the country.
“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).
“Dangote Refinery has absorbed approximately 50% of the cost increases in the international oil market,” Chiejina added.
What to know
The entry of Dangote Refinery into the market has intensified competition, particularly with the Nigerian National Petroleum Company (NNPC), which previously dominated petrol supply in the country.
This competition has led to what some observers perceive as a price war between the two players.
In December 2024, both Dangote Refinery and NNPC reduced their PMS prices, providing relief to consumers during the festive period.
However, the recent price hike has raised concerns, with some Nigerians questioning why the presence of a local refinery has not resulted in lower petrol prices.
