Financial Energy Review
In a move to balance the impact of rising global oil prices while protecting Nigerian consumers, Dangote Refinery has announced an adjustment in the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol. The new price will rise by 5%, from N899.50 to N950 per litre. Despite the hike, Dangote Refinery has emphasized that the price increase is significantly lower than the global surge in crude oil prices, which have recently jumped from $70 to $82 per barrel.
According to a statement from the refinery, Nigerian crude oil has added an additional $3 per barrel premium, further increasing the cost of refining. In response, Dangote Refinery has absorbed a substantial portion of the rising logistics and refining costs, choosing to keep the Single-Point Mooring (SPM) ex-vessel price stable at N895 per litre. This strategic move is designed to cushion the burden on consumers who are already grappling with the effects of inflation.
“We recognize the strain on Nigerian consumers due to the rising global oil prices,” said a spokesperson for Dangote Petroleum Refinery. “However, we have taken steps to limit the price impact by absorbing a large part of the increased logistics and refining costs. This intervention has prevented the price of petrol from rising to as high as N1,150 or N1,200 per litre, a scenario that would have been possible without our price moderation.”
Despite the 5% increase in ex-depot prices, Dangote Refinery has ensured that the nationwide retail price of PMS will remain capped at N970 per litre. This uniform pricing will be implemented across Nigeria, with all major partners, including Ardova, Heyden, and MRS Holdings, offering petrol to Nigerians at this rate.
“We are committed to providing Nigerians with affordable and high-quality fuel, and our price capping initiative ensures that consumers across all 36 states, as well as the Federal Capital Territory (FCT), are not subjected to exorbitant fuel costs,” the statement added.
Dangote Petroleum Refinery, which is owned by Nigerian investors, has reiterated its dedication to delivering value to Nigerians. The refinery has absorbed approximately 50% of the international oil market’s price increases to safeguard the welfare of consumers. The company emphasized that its focus on quality and affordability, alongside a deep sense of responsibility towards Nigeria’s economic well-being, remains central to its operations.
“The ownership of Dangote Petroleum Refinery by Nigerians plays a critical role in our mission,” the company stressed. “We are not only focused on providing top-quality fuel, but we also prioritize the interests of Nigerians, ensuring that they receive the best value for their money.”
In addition to price stabilization measures, Dangote Refinery has pledged to maintain transparency with consumers. The company plans to publish its ex-depot, ex-vessel, and pump prices on a weekly basis, providing Nigerians with regular updates to prevent price exploitation in the volatile global oil market.
“We believe in transparency and accountability,” the statement continued. “By regularly sharing pricing information, we will help protect consumers and ensure they are well-informed about market developments.”
The refinery also acknowledged the role of President Bola Ahmed Tinubu’s Naira for Crude Initiative, which has been instrumental in insulating Nigeria’s fuel market from global price fluctuations. By enabling the purchase of crude oil in Naira, the initiative has provided the country with greater stability in the face of volatile international markets.
“We are deeply grateful for the Naira for Crude Initiative, which has allowed Nigerians to consistently access high-quality petrol, despite global oil price volatility,” said Dangote Refinery. “We appreciate the continued trust and support of Nigerians as we work towards a self-sufficient economy that can weather international economic pressures.”
The Dangote Refinery reiterated its commitment to Nigeria’s progress toward energy self-sufficiency, emphasizing that it would continue to shield consumers from the volatility of the global oil market while ensuring the nation remains resilient in the face of evolving market conditions.
