MRS, Ardova, others to sell PMS at N970/L as Dangote explains hike in ex-depot price

Dangote Petroleum Refinery yesterday clarified the recent upward adjustment of its ex-depot price of Premium Motor Spirit (PMS) otherwise known as petroleum, saying this is directly linked to the “Significant increase in global crude oil prices.” Daily Trust reports that Dangote on Friday adjusted the price from N899 per litre to N950. The refinery stated […]

Dangote Petroleum Refinery yesterday clarified the recent upward adjustment of its ex-depot price of Premium Motor Spirit (PMS) otherwise known as petroleum, saying this is directly linked to the “Significant increase in global crude oil prices.”

Daily Trust reports that Dangote on Friday adjusted the price from N899 per litre to N950.

The refinery stated in a memo to its customers that marketers buying between 2 million – 4.99 million litres will now buy at N955 per litre while 5 million litres & above will buy at N950 per litre.

Dangote in a statement yesterday however disclosed that its partners including Ardova, Heyden, and MRS Holdings, will offer petrol to Nigerians at a retail price of N970 per litre nationwide.

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It stated that it has decided to absorb other costs to ensure people can get the products at a relatively cheaper cost, saying if Dangote had transferred the entire increase in the price of crude oil, the retail price would have been N1,150 to N1,200.

Daily Trust checks in Lagos yesterday showed that none of the major filling stations is selling at N1,000 or above.

The statement explained that since crude remains the primary input in the production of PMS, any fluctuation in its international price “Inevitably impacts the cost of the finished product.”

According to Dangote, the 5% adjustment to its ex-depot price from N899.50 to N950 per litre, “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,” it added.

It stated that Dangote Petroleum Refinery, recognised “The critical importance of affordable fuel for all Nigerians, and we remain committed to offering the best value with guaranteed quality to our customers.”

It added, “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 remain 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.

“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.

“We sincerely appreciate the continued trust and support of Nigerians as we strive to deliver the best value for their money and contribute to the development of a self-sufficient economy that is resilient to international price fluctuations.

“In the interest of transparency and good governance, Dangote Refinery will commence publishing its ex-depot price, ex-vessel price as well as pump price on a weekly basis so that consumers are not exploited.

“We would like to express our gratitude to President Bola Ahmed Tinubu for the introduction of the visionary Naira for Crude Initiative. This groundbreaking initiative has enabled consistent access to high-quality PMS for all Nigerians, while also insulating the Nigerian consumers from the volatility of the global oil market.”