By Stanley Onyeka, Lagos
Dangote Petroleum Refinery yesterday attributed its recent increase in the ex-depot price of premium motor spirit (PMS) popularly called petrol to the rise in global crude oil prices.
The Refinery admitted to making “a 5% adjustment to our ex-depot price from N899.50 to N950 per litre,” but quickly noted that “this increase is considerably lower than the 15% rise in global crude oil prices.”
This, it added, 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.
In a statement on Sunday, the Refinery said: “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… 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.”
It added: “Furthermore, Dangote Refinery has maintained the Single-Point Mooring (SPM) ex-vessel price at N895 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 Refinery has absorbed approximately 50% of the cost increases in the international oil market. This is due to our unwavering commitment to quality and affordability, as well as the ownership of the refinery by Nigerians, which remain central to our mission.”
It also noted that “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 N1,150 to N1,200 per litre in some locations, compared to the current price of N970 per litre.”
Meanwhile, the Refinery has assured that in the interest of transparency and good governance, it 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.”
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 N1,150 to N1,200 per litre in some locations, compared to the current price of N970 per litre.
