Energy

PMS: Why We Adjusted Our Ex-Depot Price By 5% -Dangote Refinery

By Sunday Etuka, Abuja

The Dangote Refinery has attributed the recent 5% adjustment of its ex-depot price of Premium Motor Spirit (Petrol) from N899.50 to N950 per litre, to the significant increase in global crude oil prices.

Mr. Anthony Chiejina, Group Chief Branding and Communications Officer of the Dangote Industries Limited (DIL), made this known in a statement on Sunday.

He explained 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.

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Chiejina contended that while the company had made a 5% adjustment to its ex-depot price, the increase was 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.

He noted that the Dangote Refinery has maintained the Single-Point Mooring (SPM) ex-vessel price at N895 per litre, adding that all its partners, including Ardova, Heyden, and MRS Holdings, will offer petrol to Nigerians at a retail price of N970 per litre nationwide.

He explained that the company has 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,” Chiejina said.

He said 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.

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