Dangote Refinery has addressed the reasons behind the increase in the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol. In a statement issued on Sunday, the refinery attributed the adjustment to the rising cost of crude oil on the global market.
The statement clarified 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.” Dangote Refinery emphasized that fluctuations in international crude oil prices directly affect the cost of producing petrol.
Earlier this week, the company announced a 5% increase in its depot price, bringing it from N899.50 to N950 per litre. However, it highlighted that this increase was considerably lower than the 15% rise in global crude oil prices. Over a short period, Brent Crude oil prices have risen from $70 to $82 per barrel, with Nigerian crude oil commanding an additional premium of around $3 per barrel on international markets.
Despite the increase, the refinery has maintained the Single-Point Mooring (SPM) ex-vessel price at N895 per litre, ensuring some stability for stakeholders and consumers. The statement explained that this measure aims to minimize the financial impact on Nigerians.
Dangote Refinery’s partners, including Ardova, Heyden, and MRS Holdings, are expected to retail petrol at N970 per litre nationwide.
