…new ex-depot price tied to rising Brent

Dangote Refinery has announced a new retail price for Premium Motor Spirit (PMS), with key distribution partners MRS Oil, Heyden, and Ardova agreeing to sell petrol at N970 per litre nationwide.

This adjustment comes as the global price of crude oil has surged, pushing up production costs for petrol across the world.

However, the refinery has assured Nigerian consumers that it is absorbing a significant portion of the cost increase to minimize the impact on local prices.

The refinery recently raised its ex-depot price from N899.50 to N950 per litre, which it attributed to the substantial 15 percent rise in global crude oil prices.

Brent Crude oil prices have jumped from $70 to $82 per barrel, further exacerbated by a premium of around $3 per barrel for Nigerian crude on the international market.

Despite this, Dangote Refinery stressed that the increase in the ex-depot price is significantly lower than the surge in global prices.

“While the increase in crude oil prices has been substantial, we have made a 5 percent adjustment to our ex-depot price. This is much lower than the 15 percent rise in global crude prices,” said Dangote Refinery in a statement.

Read also: Independent marketers say Dangote petrol price too high

The company also highlighted that the Single-Point Mooring (SPM) ex-vessel price has remained stable at N895 per litre.

Dangote Refinery assured that it would absorb much of these costs to maintain a uniform price across all 36 states of the federation and the Federal Capital Territory (FCT), ensuring that consumers in both urban and rural areas are not disproportionately affected.

“At Dangote Refinery, we remain fully committed to providing Nigerians with top-quality, affordable fuel. If we were to pass the full increase in global oil prices onto the market, the retail price of PMS could have risen dramatically. But we’ve worked to keep it at N970 per litre to shield consumers from this burden,” the statement explained.

The refinery also commended the Nigerian government for its efforts to support the domestic oil sector, particularly the Naira for Crude initiative, which has allowed for stable access to high-quality PMS despite global price fluctuations.

“We are grateful to President Bola Ahmed Tinubu for the visionary Naira for Crude Initiative. This has been key in insulating Nigerians from the volatility of the international oil market,” the company said.

As part of its commitment to transparency, Dangote Refinery announced it will begin publishing its ex-depot, ex-vessel, and retail pump prices weekly. This move is designed to enhance consumer confidence and prevent any potential exploitation by middlemen or marketers.