Dangote Refinery has attributed its recent adjustment in the former depot price of Premium Motor Spirit (PMS) to the significant rise in global crude oil prices.
Dangote Petroleum Refinery had announced an increment in their petrol price, saying that their refined products will be sold at N955 per litre at the loading gantry, which is a significant jump from the previous price of N899.
The company said marketers buying between 2 and 4.99 million litres will pay N955/litre, while those purchasing 5 million litres or more will receive a slight discount at N950/litre.
However, Dangote in a statement issued on Sunday, stated that fluctuations in international crude oil prices directly impact the cost of refined petroleum products.
The refinery explained that the adjustment was minimal compared to the 15% surge in global crude oil prices, which saw Brent Crude rise from $70 to $82 per barrel within days. Nigerian crude currently attracts an additional premium of approximately $3 per barrel in international markets.
Despite the increase, Dangote Refinery confirmed it has maintained the Single-Point Mooring (SPM) ex-vessel price at N895 per litre.
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“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.
“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 price adjustment underscores the ripple effects of global market trends on local fuel costs, as Nigeria continues its transition to reliance on domestic refining capacity.