Dangote Refinery Absorbs 50% of Global Oil Price Increases
By Patience Ikpeme
The Dangote Refinery has announced that it has absorbed approximately 50% of the recent cost increases in the international oil market, a move driven by its commitment to affordability and quality for Nigerians.
In a statement issued on Sunday, the refinery noted that ownership by Nigerians remains central to its mission, enabling it to prioritize the needs of the local market.
“If Dangote Refinery were to pass on the entire increase in the price of crude oil to the market, the retail price of Premium Motor Spirit (PMS) would be approximately N1,150 to N1,200 per litre in some locations, compared to the current price of N970 per litre,” the statement explained.
The refinery attributed the price adjustment to the sharp rise in global crude oil prices, stating that as crude oil is the primary input in PMS production, fluctuations in international prices directly influence production costs.
Despite a 15% surge in global crude oil prices, with Brent Crude rising from $70 to $82 per barrel in recent weeks and Nigerian crude commanding an additional $3 premium per barrel, Dangote Refinery has only implemented a modest 5% adjustment to its ex-depot price, increasing it from N899.50 to N950 per litre. The refinery has also maintained its Single-Point Mooring (SPM) ex-vessel price at N895 per litre.
In collaboration with its partners, including Ardova, Heyden, and MRS Holdings, the refinery confirmed that petrol will retail at N970 per litre nationwide, with no regional price variations. This uniform pricing across all 36 states and the Federal Capital Territory (FCT) has been achieved by absorbing increased logistics costs.
“We remain committed to providing Nigerians with reliable, top-quality petrol at competitive prices,” the refinery stated. It emphasized that its priority is to shield consumers from the full impact of global price volatility while adapting to evolving market conditions.
As part of its transparency efforts, Dangote Refinery announced plans to publish its ex-depot, ex-vessel, and pump prices weekly to prevent exploitation of consumers. This step aligns with its dedication to good governance and ensuring fair pricing.
The refinery also expressed gratitude to President Bola Ahmed Tinubu for introducing the “Naira for Crude Initiative,” describing it as a visionary policy that has guaranteed consistent access to high-quality PMS while insulating Nigerian consumers from global market volatility.
“We deeply appreciate the continued trust and support of Nigerians as we work to deliver the best value for their money and contribute to the development of a self-sufficient economy resilient to international price fluctuations,” the statement concluded.
