The Nigerian fuel market is buzzing with updates from Dangote Refinery, as major marketers like Ardova, Heyden, and MRS Holdings confirm a uniform retail price of N970 per litre for petrol across Nigeria. This announcement follows a slight adjustment in the refinery’s ex-depot price, a move tied to global crude oil price surges and premium costs for Nigerian crude.
Global Oil Prices Push Changes
In a Sunday statement, Anthony Chiejina, Dangote Refinery’s spokesperson, linked the new pricing to a spike in crude oil prices. He explained that the refinery raised its ex-depot price by 5%, from N899.50 to N950 per litre, a modest increase compared to the 15% hike in Brent Crude prices, which jumped from $70 to $82 per barrel in just days. Despite these adjustments, the refinery’s Single-Point Mooring (SPM) ex-vessel price remains at N895 per litre.
Chiejina stressed that the refinery has absorbed significant costs, including rising logistics expenses, to ensure that retail prices stay consistent across Nigeria’s 36 states and the Federal Capital Territory (FCT). Without this intervention, consumers could have faced pump prices as high as N1,150 to N1,200 per litre.
Balancing Costs and Transparency
To avoid undue exploitation, Dangote Refinery plans to introduce a transparent pricing model. This initiative will see weekly publications of ex-depot, ex-vessel, and retail prices to provide clarity to consumers and prevent manipulative practices in the fuel market.
A Cushion Against International Shocks
Chiejina highlighted the refinery’s efforts to shield Nigerians from the full brunt of international oil price shocks. “If Dangote Refinery were to pass on the entire cost increase to the market, retail prices would be significantly higher than N970 per litre,” he noted. By absorbing about 50% of the costs, the company highlights its commitment to maintaining affordability amidst global challenges.
