Dangote Petroleum Refinery has announced an increase in its ex-depot price of petrol, adjusting it from N899.50 to N950 per litre, a move that reflects the rising global prices of crude oil.

This 5% hike comes as part of the refinery’s strategy to absorb part of the cost increases from the global oil market, ensuring that Nigerian consumers are shielded from more significant price surges. Despite the global crude oil prices jumping by 15% in recent days, Dangote Refinery has stated that it is mitigating the impact on local retail prices.

The price adjustment follows a sharp increase in global crude oil prices, with Brent Crude climbing from $70 to $82 per barrel in just a few days. Nigerian crude, which is traded with an additional premium, adds around $3 per barrel to this price, further driving up costs.

Dangote Petroleum Refinery emphasized that the current retail price of Premium Motor Spirit (PMS) in Nigeria would remain at N970 per litre, despite the increase in international oil prices. Without the refinery’s intervention, the retail price could have soared to as high as N1,150 to N1,200 per litre in certain parts of the country.

In a statement, Dangote Refinery clarified that it has absorbed nearly 50% of the price hike in international crude oil markets in a bid to protect Nigerian consumers. “We have absorbed the increased logistics costs to guarantee uniform pricing across the 36 states of the federation and the Federal Capital Territory (FCT),” the company explained.

This measure aims to ensure that all of Dangote’s retail partners, including Ardova, Heyden, and MRS Holdings, will offer petrol at a consistent price of N970 per litre nationwide.

Dangote Refinery’s efforts to stabilize petrol prices come amid concerns over regional price disparities. The refinery assured that it is taking steps to avoid price fluctuations across different states, which could exacerbate the economic challenges faced by Nigerians.

“We are committed to ensuring that Nigerians across all regions pay the same price for petrol,” Dangote said. The company also affirmed its transparency efforts, announcing that it would publish its ex-depot price, ex-vessel price, and pump price weekly to keep consumers well-informed and prevent exploitation.

Dangote Refinery also expressed gratitude to President Bola Ahmed Tinubu’s administration for the introduction of the Naira for Crude Initiative. This initiative, which promotes the purchase of crude oil in Naira rather than in foreign currencies, has been instrumental in shielding Nigerian consumers from the volatility of the global oil market.

“This groundbreaking initiative has enabled consistent access to high-quality PMS for all Nigerians, while also insulating them from the fluctuations of the global oil market,” the company said.