The Dangote Group has confirmed an increase in the depot price of Premium Motor Spirit (PMS), following reports that its refinery raised the price of petrol from N899 to N955 per litre, effective Friday. The company clarified the price hike was driven by the sharp rise in global crude oil prices, which have surged by over 12% in the past month.
In a statement released on Sunday, Anthony Chiejina, the Branding and Communications Officer for Dangote Group, confirmed the price adjustment while distancing the company from being solely responsible for the increase. He explained that the hike was a direct result of the escalating cost of crude oil on the international market.
“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,” the statement read.
Dangote Group also pointed out that the price hike at its depot, which increased by 5% from N899.50 to N950 per litre, was significantly lower than the 15% rise in the price of Brent crude, the global benchmark. This decision, according to the company, was made in an effort to provide “the best value with guaranteed quality” to its customers despite market challenges.
The company further elaborated, stating that while crude oil prices had risen sharply—from $70 to $82 per barrel in just a matter of days—Dangote’s price hike was considerably more modest in comparison. In addition, Nigerian crude, which commands a premium of around $3 per barrel, further affects the final price.
In line with this adjustment, Dangote Refinery has maintained its Single-Point Mooring (SPM) ex-vessel price at N895 per litre, with a depot price of N955. Retail partners, including Ardova, Heyden, and MRS Holdings, will sell the product at a nationwide retail price of N970 per litre.
“We have absorbed the increased logistics costs to guarantee uniform pricing across the 36 states and the Federal Capital Territory (FCT),” the company said in its statement. “Dangote Refinery has absorbed approximately 50% of the cost increases in the international oil market. This demonstrates our commitment to quality, affordability, and the ownership of the refinery by Nigerians.”
The company also stressed that had it passed the full impact of the rising crude prices onto the market, the retail price could have surged to as high as N1,150 to N1,200 per litre in certain regions, compared to the current retail price of N970.
To further ensure transparency and fair practices, Dangote Group announced that it would begin publishing its ex-depot, ex-vessel, and pump prices weekly. This move aims to enhance transparency and prevent consumer exploitation.
The company also expressed gratitude to President Bola Tinubu for the introduction of the Naira for Crude Initiative, which they say has facilitated consistent access to high-quality PMS for Nigerians while shielding consumers from global oil price volatility.