The Dangote Group has confirmed the reported hike in the depot price of Premium Motor Spirit from its refinery
The Dangote Refinery reportedly increased the price of PMS at its depots from N899 to N955 effective on Friday, as confirmed by oil marketers
In a statement issued on Sunday by the Branding and Communications Officer of Dangote Group Anthony Chiejina, the company confirmed the hike but absolved itself of responsibility.
The company explained that the hike was a result of the soaring price of crude oil in the international market which has risen over 12% in the last month.
“We wish to clarify that 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,” the statement read.
The Dangote Group noted that the hike of its depot price of PMS is lower than the percentage rise of Brent oil, the international benchmark of crude oil. This, it said is to show its commitment “to offering the best value with guaranteed quality to our customers.”
“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,” it explained.
Meanwhile, the company added that it is maintaining a Single-Point Mooring (SPM) ex-vessel price of N895 per litre, a depot price of N955, while its partners will sell at a retail price of N970.
“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. 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.”
The company noted that If it were to pass on the entire percentage 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 further stated that will commence publishing its ex-depot price, ex-vessel price as well as pump price every week “in the interest of transparency and good governance,” so that consumers are not exploited.
It thanked President Bola Tinubu for the introduction of the Naira for Crude Initiative which “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.”
What you should know
- Nairametrics reported that global oil prices rose to $81 last week, the highest since October 2024. The bullish rise was due to new sanctions imposed on Russia’s oil industry by the United States.
- High global oil prices mean increased revenue for Nigeria but it also means higher retail prices of fuel and diesel.