Dangote Refinery pledges price cushion for domestic fuel market
Sopuruchi Onwuka
Nigeria’s largest private fuel producer, Dangote Petroleum Refinery, has pledged to continue providing price cushion for the domestic market despite the prevailing volatility in the international prices of crude oil.
The company stated at the weekend that it would continue absorbing a substantial price shocks at the international crude oil market to ensure relatively stable petrol prices in the country.
The company stated that the several cost stabilization and price uniformity measures are direct benefits of government’s incentives that guarantee crude oil supply and Naira denominated procurement.
It said the visionary Naira for Crude 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.
The refinery recently announced a 5% increase in the ex-depot price of petrol from N899.50 to N950 per litre, emphasizing that the new price is far lower than the 15% surge in global crude oil prices, “which have jumped from $70 to $82 per barrel in recent days.”
“Additionally, Nigerian crude oil has added an extra $3 per barrel premium to the cost,” Dangote Refinery stated.
Dangote Refinery said it absorbed a significant portion of the increased logistics and refining costs to keep domestic fuel prices low, pointing out that it has kept ex-vessel price stable at N895 per litre.
“Without this intervention, the retail price of PMS in Nigeria could have surged to as high as N1,150 to N1,200 per litre in some regions. However, the refinery’s decision ensures that the nationwide retail price remains capped at N970 per litre, offering much-needed relief to Nigerian consumers.
“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),” it said
The refinery also pledged high-quality fuel to Nigerians and weekly publiaction of its ex-depot, ex-vessel, and pump prices in order to protect customers from price exploitation.
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,” it added.
The company reiterated that it would continue prioritising Nigerians’ best interests, ensuring that consumers are shielded from the volatility of the global oil market, while adapting to evolving market conditions.
