
PMS price hike: We have absorbed 50% of cost increase to make Nigerians comfortable — Dangote
…To publish ex-depot price, ex-vessel price weekly
Following outcry over the recent adjustment of the pump price of Premium Motor Spirit (more often referred to as Petrol), the Dangote Refinery has stated that it is absorbing 50 percent of the costs to make Nigerians comfortable.
In a statement on Sunday, the Dangote Refinery revealed that the hike in its ex-depot price is directly related to the significant increase in global crude oil prices.
The company further noted that it has absorbed approximately 50 percent of the cost increases in the international oil market.
“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 company explained.
The company went further: “While we have made a 5 percent 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.”
Adding that it has maintained the Single-Point Mooring (SPM) ex-vessel price at N895 per litre, it revealed that all its 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),” the statement read.
The company further revealed that it will commence publishing its ex-depot price, ex-vessel price as well as pump price on a weekly basis.
Giving reasons for this decision, the company stated that it is due to its unwavering commitment to quality and affordability, “as well as the ownership of the refinery by Nigerians, which remain central to our mission.
“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.
“We are committed 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.
“We sincerely appreciate 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.
“In the interest of transparency and good governance, Dangote 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.”
Additionally, the Refinery acknowledged the “Naira for Crude Initiative” introduced by President Bola Ahmed Tinubu, describing it as a visionary policy that has enabled steady access to affordable PMS while shielding Nigerians from the full brunt of global oil price volatility.
Reaffirming its commitment to Nigeria’s economic growth and resilience, the company promised to continue prioritising consumer welfare and delivering value amidst evolving market conditions.