Dangote Petroleum Refinery has increased the price of Premium Motor Spirit (PMS), popularly known as petrol, from N935 to N970 per litre.
According to the refinery, the move is due to the rise in crude oil prices in the global market which has moved from $70 to $82 per barrel.
In a statement, the refinery said it absorbed about 50% of the current increase in market costs before implementing the N35 price hike.
The new price is applicable nationwide across all retail partners – Ardova, Heyden and MRS Holdings. Dangote Refinery has also covered additional logistics costs across the 36 states and FCT.
Dangote Refinery stated that if it had passed on the full impact of the crude oil price increase, PMS could have sold between N1,150 and N1,200 per litre in some places. But the refinery is committed to affordability and quality for Nigerian consumers.
The latest adjustment also reflects the rising global crude prices which affects the cost of petrol production.
Crude oil is the raw material for PMS and any fluctuation in its price affects the final retail price.
In explaining the price adjustment, Dangote Refinery said it only increased its ex-depot price by 5% from N899.50 to N950 per litre. This is lower than the 15% increase in global crude prices.
The company also maintained its Single-Point Mooring (SPM) ex-vessel price at N895 per litre.
The refinery emphasized its committed to making petrol available to Nigerians in reliable and quality form at competitive prices.
Despite the ups and downs of international oil prices, the company said it will continue to absorb the shocks for Nigerians. With this adjustment, Dangote Refinery is balancing affordability and sustainability.