Nigerians React as Dangote, PETROAN Blame Global Crude Prices for Fuel Hike

Amid rising fuel costs, Nigerians express frustration as Dangote and PETROAN attribute the hike to surging global crude prices, intensifying economic hardship nationwide.

Dangote Refinery and Petroleum Products Marketers have attributed the recent increase in premium motor spirit prices to rising global crude oil costs, amid concerns from Nigerians about its effects.

This follows Nigerians voicing their worries about the impact of the recent fuel price increase.

It was reported that on Friday, Nigerians encountered a new nationwide PMS price.

As a result, the Dangote Refinery increased its ex-depot prices from N899.50 per litre to N950 per litre for its $20 billion facility, marking a N50 or 5 percent price increase.

Subsequently, the retail price of petrol increased to a range between N970 and N1,150 per litre from the previous range of N935 to N1,100.

Specifically, at filling stations like MRS that have direct petrol sale partnerships with Dangote Refinery, the price of PMS has increased from N935 to N970 per litre.

It has been reported that Nigerian National Petroleum Company Limited retail outlets have increased the price of petrol to N999 per litre, up from N965. Meanwhile, other filling stations across the country are selling petrol at prices ranging between N1,040 and N1,150.

Dangote Refinery and PETROAN pass on the blame.

In response to the recent price increase, Dangote Refinery’s spokesperson, Anthony Chijiena, stated that the rise is attributed to a substantial surge in global crude prices.

The increase in domestic petrol prices, as reported by the 650,000-barrels-per-day facility, is attributed to Brent crude’s price rising from $70 per barrel to $82.

However, Dangote Refinery stated that it has absorbed 50 percent of the cost increases in the international oil market.

The company stated that the retail price of its petrol could have increased to between N1,150 and N1,200 per litre in certain areas, compared to the current rate of N970 per litre.

We want to make it clear that our recent change in the ex-depot price of Premium Motor Spirit (Petrol) is due to a substantial rise in global crude oil prices. Since crude oil is the main ingredient used to produce PMS, any variations in its international pricing directly affect the cost of producing fuel.

At Dangote Petroleum Refinery, we understand the critical need for affordable fuel across Nigeria and remain dedicated to delivering exceptional value with assured quality to our customers. Although we have adjusted our ex-depot price by 5%, moving from N899.50 to N950 per litre, this increase is notably lower than the 15% surge in global crude oil prices, where Brent Crude has risen rapidly from $70 to $82 within days—plus a premium of around $3 per barrel for Nigerian crude on international markets. Additionally, we’ve kept the single-point mooring (SPM) ex-vessel price steady at N895 per litre.

All our partners, such as Ardova, Heyden, and MRS Holdings, will provide petrol to Nigerians at a nationwide retail price of N970 per litre. We’ve covered the increased logistics costs to ensure consistent pricing throughout all 36 states and the Federal Capital Territory (FCT).

Dangote Refinery has taken on about 50% of the rising costs in the global oil market. This decision stems from our strong dedication to quality and affordability, as well as ensuring that Nigerian ownership remains integral to our mission. If we were to transfer the full impact of crude oil price hikes directly to consumers, petrol prices would range between N1,150 and N1,200 per litre in certain areas—much higher than today’s rate of N970 per litre.

PETROAN, through a statement from its spokesperson Joseph Obele, also attributed the recent increase in fuel prices to global oil price fluctuations.

According to Billy Gillis-Harry, the National President of PETROAN, the association highlighted that fluctuations in international crude oil prices will inevitably impact domestic costs. He remarked, “It’s no longer amusing; even retail outlet owners are feeling the effects of these erratic price changes. It impacts our business.”

“Our selling rate consistently aligns with our buying rate. The current increase is due to external factors and should not be attributed to our members,” he said.

Nigerians express their grievances.

Nigerians have expressed dissatisfaction with the recent increase in fuel prices.

In response, Prof. Theophilus Ndubuaku, Deputy President of the Nigeria Labour Congress Political Commission, stated that the new increase in fuel prices will impact the already elevated costs of food and transportation fares.

“This increase in pump prices will impact not only the cost of food and transportation, but also contribute to inflation and affect the value of the naira,” he explained.

Suleiman Abubakar, an Abuja resident, expressed concerns that the recent fuel price increase would make the coming days more challenging for Nigerians.

“The upcoming days will pose challenges for Nigerians. Due to the recent fuel price increase, we can expect a rise in food costs and transportation fares. It’s unfortunate that Dangote and petrol marketers attribute this situation to crude oil prices, forcing Nigerians to cope with these circumstances,” he remarked.