By Grace Ademulegun
The Dangote Petrochemical Refinery has attributed the recent rise in the price of Premium Motor Spirit (PMS), also known as petrol, to the global increase in the price of crude oil.
The refinery published in a statement in its official X handle on Sunday, January 19, 2025, that it was raising the ex-depot price of gasoline from N899 to N955 per litre.
The refinery explained the change by stating: “The recent change in our ex-depot price of Premium Motor Spirit (Petrol) is directly due to the notable increase in the price of crude oil globally. Any change in the price of crude internationally will inevitably affect the final product’s cost because it is still the major input used to produce PMS.”
The refinery claims that in recent weeks, the price of crude oil has increased by 15 percent, from $70 to $82 per barrel.
Although the rise is significant, Dangote Refinery stressed that, in comparison to the broader global shift, its adjustment only represented a 5 percent increase, the refinery said, emphasising that the price of petrol is influenced by the premium for Nigerian crude oil, which is about $3 per barrel.
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Dangote Refinery stated that it has kept its Single-Point Mooring (SPM) ex-vessel price at N895 per litre in spite of these difficulties. Furthermore, petrol will be sold for N970 per litre across the country, including in the Federal Capital Territory (FCT), via its retail partners Ardova, Heyden, and MRS Holdings.
The refinery claimed to have borne higher logistics costs in order to guarantee price consistency throughout the nation.
In certain places, the price of petrol might have skyrocketed to N1,150 to N1,200 per litre if it hadn’t been for its intervention, it added.
The statement clarified that the retail price of PMS would be between N1,150 and N1,200 per litre in some areas, as opposed to the current price of N970 per litre, if Dangote Refinery were to pass on the whole rise in crude oil prices to the market.
Reiterating its pledge to protect Nigerians from the full impact of global price volatility, the refinery stated that it has absorbed almost half of the cost increases brought on by rising crude oil prices.
“We continue to put Nigerians’ best interests first in these trying times, working to protect consumers from the full effects of global price volatility while adjusting to changing market conditions,” the statement read.
