Dangote Speaks on New Petrol Price, Directs Buyers to Cheaper Filling Stations
- The Dangote Refinery has said the recent increase in petrol prices is not from the company
- The refinery revealed in a statement that the increase was due to a rise in global crude oil prices
- Nigerians are seeing a hike in prices from the second week in January, following the announcement of new prices from Dangote Refinery
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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Dangote Refinery has blamed the recent petrol price increases on the global rise of crude oil costs.
The company disclosed that the adjustment in ex-depot prices is directly related to the increase in global crude oil prices.
Source: UGC
The rise in crude oil prices is to blame
Legit.ng earlier reported that Brent, the global benchmark for oil prices, rose from $75 per barrel to over $80 last week.
The price increase in crude sparked a global hike in gasoline costs, affecting countries like Nigeria.
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“Dangote has increased”: Petrol cost rises again in Nigeria as filing stations change price
The mega refinery stated that as crude remains the primary input in PMS, any fluctuation in its international price impacts the local market.
The facility added that despite the 15% rise in crude oil prices from $70 to $82 per barrel, the refinery’s adjustment reflected only a five per cent increase.
It also stated that the premium for Nigerian crude, about $3 per barrel, influenced pricing.
Despite these challenges, the refinery has maintained its Single-Point Mooring (SPM) ex-vessel rice at N895 per litre.
Dangote directs buyers to cheaper places
The 650,000 bpd-capacity refinery noted that its partners, such as Ardova, Heyden, and MRS Holding, would sell the product at a retail price of N970 per litre nationwide.
According to the company’s statement, it has absorbed increased logistics costs to ensure uniform pricing nationwide, including the FCT, Abuja.
The statement reads:
“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.”
Expert asks Nigerians to brace up
The Lekki-based refinery reiterated its commitment to affordability, saying that it has absorbed 50% of the cost of hikes in the international oil market to protect Nigerians from the full effect of global price volatility.
The company’s statement said it will continue prioritising Nigerians' best interests to shield consumers from the full impact of global price volatility while adapting to evolving market conditions.
The price of petrol increased recently following the announcement of a new cost by the refinery.
The refinery increased PMS price from N907 per litre to N977, prompting nationwide increases in petrol prices.
Analysts have said petrol prices are susceptible to global oil prices as high crude oil prices will result in commensurate price increases in the local market.
Adeola Yusuf, Energy Policy analyst, said Nigerians should brace for even higher petrol prices in the coming days.
“I believe the prices will hit N1,200 as it did before the end of last year because oil prices are reacting to crises in certain parts of the world.
Also, the embargo on Russian oil by the US is affecting prices globally,” he said.
Marketers give reasons for crashing petrol prices
Legit.ng earlier reported that the Independent Petroleum Marketers Association of Nigeria (IPMAN) have said that the current crash in petrol prices was due to the robust partnership with Dangote Refinery.
IPMAN’s national president, Abubakar Maigandi, disclosed this during the petroleum industry stakeholders meeting in Abuja on Thursday, January 16, 2025.
Maigandi said that in 2024, the association members began loading petrol from the Lekki-based refinery and MRS Oil, which reduced pump prices nationwide.
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Source: Legit.ng
