The Dangote Refinery has blamed the recent petrol price increases on the global rise of crude oil costs.
The company disclosed that the adjustment in ex-depot prices is directly related to the increase in global crude oil prices.
TimesNow.com.ng earlier reported that Brent, the global benchmark for oil prices, rose from $75 per barrel to over $80 last week.
The price increase in crude sparked a global hike in gasoline costs, affecting countries like Nigeria.
The mega refinery stated that as crude remains the primary input in PMS, any fluctuation in its international price impacts the local market.
The facility added that despite the 15% rise in crude oil prices from $70 to $82 per barrel, the refinery’s adjustment reflected only a five per cent increase.
It also stated that the premium for Nigerian crude, about $3 per barrel, influenced pricing.
Despite these challenges, the refinery has maintained its Single-Point Mooring (SPM) ex-vessel rice at N895 per litre.
The 650,000 bpd-capacity refinery noted that its partners, such as Ardova, Heyden, and MRS Holding, would sell the product at a retail price of N970 per litre nationwide.
According to the company’s statement, it has absorbed increased logistics costs to ensure uniform pricing nationwide, including the FCT, Abuja.
The statement reads:
Expert asks Nigerians to brace up
The Lekki-based refinery reiterated its commitment to affordability, saying that it has absorbed 50% of the cost of hikes in the international oil market to protect Nigerians from the full effect of global price volatility.
The company’s statement said it will continue prioritising Nigerians’ best interests to shield consumers from the full impact of global price volatility while adapting to evolving market conditions.
The price of petrol increased recently following the announcement of a new cost by the refinery.
The refinery increased PMS price from N907 per litre to N977, prompting nationwide increases in petrol prices.
Analysts have said petrol prices are susceptible to global oil prices as high crude oil prices will result in commensurate price increases in the local market.
Adeola Yusuf, Energy Policy analyst, said Nigerians should brace for even higher petrol prices in the coming days.
TimesNow.com.ng earlier reported that the Independent Petroleum Marketers Association of Nigeria (IPMAN) have said that the current crash in petrol prices was due to the robust partnership with Dangote Refinery.
