KEY POINTS
- Crude oil prices globally increased by 15 percent necessitating a 5 percent ex depot price increment.
- To protect Nigerians, Dangote Refinery absorbs 50 percent of cost increases.
- Petrol marketing at ₦970 per litre nationwide.
The ex-depot petrol price of ₦899 to ₦955 per litre adjustment by the Dangote Refinery recently came, the company stated, as a result of increasing global crude oil prices.
On Sunday, the January 19, 2025, the refinery clarified that the price change does not reflect more than a fraction of the rise in the cost of crude oil, a main input into petrol production.
Rising crude oil prices, impacts
Nigerian crude currently enjoys a premium of $3 per barrel on global crude oil prices that have surged in the last week by 15%, up from $70 to $82 per barrel. Given these challenges, the refinery made a 5% adjustment, where the refinery has decreased the impact to consumers.
Should all the increase in cost of crude oil be passed on, retail prices can increase from ₦1,150 to ₦1,200 per litre.’ However, we have taken up about 50% of these cost increases,” the statement said.
A pricing structure for Nigeria
In order to maintain fair pricing nationwide, Dangote Refinery has its Single Point Mooring ex-vessel price at ₦895 per litre. Ardova, Heyden and MRS Holdings, for example, partner marketers, retail petrol at ₦970 per litre, including increased logistics costs.
Commitment to Nigerians
The refinery also reaffirmed its commitment to protecting Nigerians from the ravages of global price volatility.
The statement thanked Nigerians for their trust, saying it prioritized affordability and tried ‘to keep the impact of international market fluctuations off consumers’.
