Dangote Explains Fuel Price Hike, Says MRS and 2 Others to Sell at N970/Litre

Aliko Dangote has addressed the recent fuel price hike, attributing it to market forces, with MRS and two other marketers set to sell at N970 per litre.

The recent hike in the ex-depot price of Premium Motor Spirit (PMS), or petrol, at Dangote Refinery has been linked to the increase in global crude oil prices.

In a statement released on Sunday, Anthony Echiejina, the Head of Corporate Communications at Dangote Industries, explained that the price change was directly due to fluctuations in global oil markets.

On January 17, Dangote Refinery increased the price of petrol, also referred to as fuel, from N899 to N955 per litre.

Echiejina clarified that crude oil serves as the primary raw material for producing petrol, so any changes in international crude prices directly affect the cost of the final product.

“According to Echiejina, fluctuations in international crude prices inevitably influence the cost of the finished product.”

He elaborated that the ex-depot price experienced a five percent increase, going from N899.50 to N950 per litre, which remains significantly lower than the 15 percent rise in global crude oil prices, as Brent Crude climbed from $70 to $82 per barrel.

Echiejina noted that the Dangote Refinery had absorbed around 50 percent of the cost increase due to rising crude prices, maintaining the Single-Point Mooring (SPM) ex-vessel price at N895 per litre.

Echiejina added, “Consequently, all partners of the Dangote Refinery—such as Ardova, Heyden, and MRS Holdings—will sell petrol nationwide at a retail price of N970 per litre.”

In response to the global price surge, Dangote Refinery has committed to minimizing the impact on Nigerian consumers by absorbing higher logistics costs. Their goal is to maintain consistent pricing across Nigeria.

He mentioned that if the full increase in crude oil prices were passed on to consumers, the retail price of PMS might have reached N1,150 to N1,200 per liter in certain regions, as opposed to the current rate of N970 per liter.

The refinery has reiterated its pledge to deliver high-quality petrol at competitive prices, despite the instability in the global oil market.

Echiejina emphasized that Dangote Refinery’s main focus is to protect Nigerian consumers from the full impact of market changes, while also playing a role in enhancing the country’s economic growth and self-sufficiency.

To ensure transparency, he announced that the company will publish its ex-depot price, ex-vessel price, and pump price every week. This move aims to keep consumers informed and protect them from potential price exploitation.

He also commended President Bola Tinubu’s Naira for Crude Initiative, which has ensured consistent access to high-quality petrol and helped ease some of the pressures from global market fluctuations.