Why we increased PMS price — Dangote Refinery

The management of Dangote Refinery has said the recent adjustment in its ex-depot price of Premium Motor Spirit (PMS), otherwise known as petrol, is directly related to the significant increase in global crude oil prices.

The refinery had raised its PMS price from N899/litre to N955/litre at its loading gantry after the price of crude oil per barrel rose to $80.

In a statement on Sunday, Group Chief Branding and Communications Officer, Anthony Chiejina, said 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,” he said.

Chiejina said the refinery’s partners, including Ardova, Heyden, and MRS Holdings, will now offer petrol to Nigerians at a retail price of N970 per litre nationwide, adding that “we have absorbed the increased logistics costs to guarantee uniform pricing across the 36 states of the federation and the Federal Capital Territory (FCT).”

He said the refinery has absorbed approximately 50 per cent of the cost increases in the international oil market “due to our unwavering commitment to quality and affordability, as well as the ownership of the refinery by Nigerians, which remains central to our mission.”

He said if the 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.

Chiejina expressed the management’s commitment 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,” he said.

He expressed appreciation for 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.”

He said, in the interest of transparency and good governance, the refinery 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.

He expressed gratitude to President Bola Tinubu for the introduction of the visionary Naira for Crude Initiative, saying the groundbreaking initiative has enabled consistent access to high-quality PMS for all Nigerians, while also insulating Nigerian consumers from the volatility of the global oil market.