Dangote Refinery and Petroleum Products Marketers have blamed the recent premium motor spirit price hike to global crude oil prices.
It would be recalled that PMS (petrol) price was quietly increased nationwide on Friday.
Dangote Refinery raised its ex-depot prices from N899.50 per litre to N950 per litre, representing a N50 or 5 per cent price hike.
Thereafter, the retail price of petrol rose to between N970 and N1,150 from N935 and N1,100 per litre.
Particularly, in filling stations with direct petrol sale partnerships with Dangote Refinery, such as MRS filling stations, PMS is sold at N970 per litre, up from N935.
Retailer outlets of the Nigerian National Petroleum Company Limited now sell petrol at N999 per litre, up from N965. In contrast, other filling station outlets sell petrol between N1,040 and N1,150 nationwide.
Dangote Refinery, in a statement by its spokesperson, Anthony Chijiena, explained that the hike was due to a significant surge in the global prices of crude.
According to the 650,000-barrels-per-day facility, the rise in domestic petrol prices is linked to Brent crude’s price hike to $82 per barrel from $70.
Dangote Refinery, however, noted that it had absorbed 50 per cent of the cost increases in the international oil market.
The company added that the retail price of its petrol would have risen to between N1,150 and N1,200 per litre in some locations, compared to the current price of N970 per litre.
“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.
“At Dangote Petroleum Refinery, we recognize 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.
“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 remains 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.”
On their part, PETROAN, in a statement by its spokesperson, Joseph Obele, also blamed global oil prices for the recent hike in fuel prices.
Quoting the National President of PETROAN, Billy Gillis-Harry, the association noted that international crude oil prices would inevitably affect domestic costs. “It’s no longer funny; even retail outlet owners are affected by this up-and-down dwindling of prices. It affects our business.”
“Our selling rate always reflects our buying rate. Our members shouldn’t be blamed for the current increase; it’s an external factor,” he stated.
