20
Jan
Jan
DANGOTE REFINERY EXPLAINS RECENT FUEL PRICE ADJUSTMENT, ABSORBS 50% OF GLOBAL CRUDE OIL PRICE HIKE
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Nicolas Adekeye / 3 days
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- 2 min read
World’s Petroleum refinery giant, Dangote Petroleum, has attributed the recent adjustment in its ex-depot price of Premium Motor Spirit (PMS) to the significant increase in global crude oil prices. The refinery consequently adjusted its ex-depot price from N899.50 to N950 per litre, representing a 5% increase. In a statement by the Group Chief Branding and Communications Officer, Anthony Chiejina, the increase is directly related to the fluctuation 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,” Chiejina said. The refinery noted that the 5% 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. Chiejina added that Dangote Refinery has maintained the Single-Point Mooring (SPM) ex-vessel price at N895 per litre. He also stated that it has absorbed the increased logistics costs to guarantee uniform pricing across the 36 states of the federation and the Federal Capital Territory (FCT). According to him, “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,” . Dangote refinery emphasized its commitment to providing reliable, top-quality petrol to Nigerians at competitive prices. “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,” Chiejina stated. Chiejina also expressed gratitude to President Bola Ahmed Tinubu for the introduction of the Naira for Crude Initiative, which has enabled consistent access to high-quality PMS for all Nigerians, while also insulating Nigerian consumers from the volatility of the global oil market.