Dangote Refinery has said it raised the price of its Premium Motor Spirit ,Petrol, by 5% to N950 per litre due to a rise in international crude oil prices.
The refinery said the actual cost of its product should be around N1,200 per litre.
The clarification on Sunday came in the wake of reports about its price review. In December, the company announced a price reduction.
Following criticisms due to the reversal, Dangote Refinery said the hike is directly related to the significant increase in global crude oil prices.
The firm said in a statement that, “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.
“At Dangote Petroleum Refinery, we recognise the critical importance of affordable fuel for all Nigerians, and we remain committed to offering the best value with guaranteed quality to our customers”.
Dangote said, it made a 5% adjustment to its ex-depot price from N899.50 to N950 per litre.
The firm said, “It is important to note that this 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.
“Furthermore, Dangote Refinery has maintained the Single-Point Mooring ,SPM, ex-vessel price at N895 per litre.
“All our partners, including Ardova, Heyden, and MRS Holdings, will offer petrol to Nigerians at a retail price of N970 per litre nationwide. 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 noted that it absorbed approximately 50% of the cost increases in the international oil market.
According to the firm, it took the decision due to its unwavering commitment to quality and affordability, as well as the ownership of the refinery by Nigerians.
Dangote Refinery said, “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”.
