- Dangote Refinery raised ex-depot petrol prices to N950 per litre due to a 15% increase in global crude oil prices
- The refinery reportedly absorbed 50% of the increased costs to protect consumers despite the price hike
- Retail prices remained uniform at N970 per litre across Nigeria, with major partners involved in distribution
Dangote Refinery has clarified that the recent increase in its ex-depot petrol prices from N899 to between N950 and N955 per litre was due to a significant rise in global crude oil prices, which increased by approximately 15 per cent.
In a statement released on Sunday, January 19, Anthony Chiejina, Chief Branding and Communication Officer for Dangote Industries explained that the surge in crude oil prices, which saw Brent Crude climb from $70 to $82 per barrel, led to the price adjustments.
Dangote refinery sets uniform retail price across Nigeria
“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,” the statement read.
The refinery, located in Lagos, also set a uniform retail price of N970 per litre across all 36 states and the Federal Capital Territory (FCT). This new price will apply to all sales handled by its partners, including Ardova, Heyden, and MRS Holdings.
Despite a 5 per cent increase in bulk purchase costs from N899 to N950 per litre, Dangote Refinery noted that this rise was still considerably lower than the 15 per cent hike in global crude prices.
The company emphasised that any fluctuation in crude oil prices directly impacts the cost of petrol, given that crude oil is the main input for refining the product.
Dangote Refinery clarifies new pricing tiers
“While we have made a 5 per cent 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 per cent 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.”
The refinery also outlined new pricing tiers for marketers, with those purchasing between 2 million and 4.99 million litres charged N955 per litre, while buyers of 5 million litres or more would pay N950 per litre.
Furthermore, the company stated that it had absorbed roughly 50 per cent of the international cost increase to shield consumers from a steeper price rise. Without this adjustment, petrol prices could have reached between N1,150 and N1,200 per litre.
“All our partners, including Ardova, Heyden, and MRS Holdings, will offer petrol to Nigerians at a retail price of N970 per litre nationwide. 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 to publish weekly pump prices for transparency
The company also announced that it would begin publishing its ex-depot, ex-vessel, and pump prices weekly to promote transparency and prevent potential exploitation in the market.
“In the interest of transparency and good governance, Dangote refinery will now commence publishing its ex-depot price, ex-vessel price as well as pump price on a weekly basis so that consumers are not exploited,” it noted.
The refinery expressed gratitude to Nigerians for their continued support and acknowledged the government’s role in facilitating consistent access to affordable fuel, particularly through the Naira-for-Crude initiative, introduced by President Bola Tinubu.
It reiterated its commitment to offering high-quality, affordable fuel, and promised to continue protecting consumers from the full impact of global price fluctuations.
“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,” the statement read.
From Shonekan’s 70 kobo to Tinubu’s N897: See the figures of Nigeria's major fuel hikes
Meanwhile, TheRadar earlier reported that from 1993 to 2024, Nigeria had seen several major fuel price hikes.
TheRadar reviewed Nigeria's major fuel price hikes from the era of Chief Ernest Shonekan to Tinubu’s administration.