N899.50 to N950: Dangote Refinery Caps Petrol Price Increase at 5%, Absorbs 50% of Costs Despite 15% Global Oil Price Surge

• Sacrifices Profit Margins to Shield Nigerians from Soaring Fuel Prices
• Maintains N970 nationwide in Partner Stations: Ardova, MRS, Heyden

Dangote Petroleum Refinery has clarified that the recent adjustment in its ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, is a direct response to the significant rise in global crude oil prices. With crude oil serving as the primary input for PMS production, fluctuations in international prices directly impact the cost of the finished product.

In a statement released moments ago by its Group Chief Branding and Communications Officer, Anthony Chiejina, the Refinery emphasized its commitment to ensuring affordable fuel for Nigerians.

Despite the 15% surge in crude oil prices, from $70 to $82 per barrel—alongside an approximate $3 per barrel premium for Nigerian brent crude—the refinery has limited its ex-depot price increase to just 5%, raising it from N899.50 to N950 per litre.

The refinery has also assured Nigerians that it has maintained its Single-Point Mooring (SPM) ex-vessel price at N895 per litre. Moreover, its retail partners, including Ardova, Heyden, and MRS Holdings, will sell petrol at N970 per litre nationwide, as the refinery has absorbed the increased logistics costs to guarantee uniform pricing across Nigeria’s 36 states and the Federal Capital Territory (FCT).

All these, according to the statement is a deliberate attempt to ensure Nigerians are shielded from the full impact of global market volatility.

“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. If Dangote Refinery were to pass on the entire 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,” noted Chiejina.

Another significant move by the refinery is the planned publication of its ex-depot, ex-vessel, and pump prices weekly. This, according to Chiejina, is to ensure transparency and prevent exploitation of consumers by guaranteeing access to accurate and up-to-date pricing information.

The refinery also expressed gratitude to President Bola Ahmed Tinubu for his visionary Naira for Crude Initiative, which has facilitated access to high-quality PMS while insulating Nigerians from global oil price volatility.

“We sincerely appreciate the trust and support of Nigerians as we work towards building a self-sufficient economy, resilient to international price fluctuations,” the statement concluded.

The price absorption, according to Dangote Refinery, reaffirms its commitment to delivering reliable, top-quality petrol at competitive prices. In these challenging times, the refinery strives to shield consumers from the full impact of global price increases while adapting to market dynamics.