Dangote Refinery explains petrol price hike amid rising global crude costs

The Dangote Petrochemical Refinery has attributed its recent increase in the price of Premium Motor Spirit (PMS), commonly known as petrol, to the rising cost of crude oil in global markets.

In a statement issued on Sunday, January 19, 2025, via its official X handle, the refinery announced an adjustment in its ex-depot price from ₦899 to ₦955 per litre.

“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.

It explained that while global crude oil prices have surged by 15%, from $70 to $82 per barrel, the refinery’s price adjustment reflects only a 5% increase. Additionally, the premium for Nigerian crude oil, currently about $3 per barrel, has further influenced production costs.

Despite these pressures, Dangote Refinery has maintained its Single-Point Mooring (SPM) ex-vessel price at ₦895 per litre.

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The refinery also confirmed that its partners—Ardova, Heyden, and MRS Holdings—would retail petrol nationwide at ₦970 per litre. The company stated it has absorbed the increased logistics costs to ensure uniform pricing across the country, including the Federal Capital Territory (FCT).

“If Dangote 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 ₦1,150 to ₦1,200 per litre in some locations, compared to the current price of ₦970 per litre,” the statement clarified.

The company emphasized its commitment to affordability by absorbing nearly 50% of the cost increases to shield Nigerians from the full impact of global price volatility.

“In these challenging times, we continue to prioritize the best interests of Nigerians, striving to shield consumers from the full impact of global price volatility while adapting to evolving market conditions,” the statement noted.

The refinery concluded by thanking Nigerians for their trust and support while reaffirming its dedication to providing high-quality petrol at competitive prices and contributing to economic self-sufficiency.

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