Why we increase petrol price – Dangote

The Dangote Petroleum Refinery has addressed public concerns over the recent hike in the price of Premium Motor Spirit (PMS), popularly known as petrol, clarifying that the adjustment in its ex-depot price was driven by surging global crude oil prices.

In an official statement, the company disclosed that the price increase, which raised the ex-depot cost from ₦899.50 to ₦950 per litre, reflects only a 5% adjustment, significantly lower than the 15% rise in international crude oil prices. Global benchmark Brent Crude climbed from $70 to $82 per barrel, with an additional premium for Nigerian crude, pegged at about $3 per barrel.

Despite the upward trend in production costs, Dangote Refinery assured Nigerians of its commitment to affordability and quality, explaining that it absorbed about 50% of the additional costs to mitigate the full impact on consumers. The refinery maintained its Single-Point Mooring (SPM) ex-vessel price at ₦895 per litre.

As part of its pricing strategy, partners like Ardova, Heyden, and MRS Holdings will retail petrol at ₦970 per litre nationwide, ensuring a uniform pump price across all 36 states and the Federal Capital Territory (FCT). Without the intervention, the retail price could have exceeded ₦1,150 to ₦1,200 per litre in some regions, the statement noted.

The refinery also pledged to enhance transparency by publishing its ex-depot, ex-vessel, and retail prices on a weekly basis, a move aimed at curbing exploitation and keeping consumers informed.

In expressing gratitude to President Bola Ahmed Tinubu, Dangote Refinery hailed the introduction of the Naira-for-Crude Initiative as a visionary policy. According to the company, this initiative has stabilized fuel access while shielding Nigerians from the volatility of the global oil market.

The statement concluded with a reaffirmation of Dangote Refinery’s dedication to delivering competitive, reliable, and high-quality petroleum products, prioritizing the welfare of Nigerians and fostering a resilient, self-sufficient economy.

https://x.com/DangoteGroup/status/1881033834805817461?t=qs7QvINyemkR2P_SU9U6rA&s=19