Dangote refinery: Why we increased petrol price

The Dangote Petrochemical Refinery has hinged the recent increase in the price of Premium Motor Spirit (PMS), fondly called petrol, on an increase in global crude oil prices.

The Star had reported that the Dangote refinery increased petrol prices from N899/litre to N955/litre at its loading gantry.

The refinery, in an email sent to its customers on Friday, January 17, 2025, announced an upward adjustment in the price of petrol produced by the refinery.

Speaking on the development via a statement on Sunday, January 19, the Dangote refinery said: “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.

“At Dangote Petroleum Refinery, we recognise the critical importance of affordable fuel for all Nigerians, and we remain committed 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.

“Furthermore, Dangote Refinery has maintained the Single-Point Mooring (SPM) ex-vessel price at N895 per litre.

Petrol price rises to N1,150

The refinery noted that all its partners, including Ardova, Heyden, and MRS Holdings, will offer petrol to Nigerians at a retail price of N970 per litre nationwide.

It added: “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.

“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.

“We are committed to providing reliable, top-quality petrol to the Nigerian people at competitive prices.

“In these challenging times, we continue to prioritise the best interests of Nigerians, striving to shield consumers from the full impact of global price volatility while adapting to evolving market conditions.

“We sincerely appreciate the continued trust and support of Nigerians as we strive to deliver the best value for their money and contribute to the development of a self-sufficient economy that is resilient to international price fluctuations.”

The Dangote refinery said, in the interest of transparency and good governance, it will commence publishing its ex-depot price, ex-vessel price as well as pump price on a weekly basis so that consumers are not exploited.

The Star