Dangote Refinery and Petrol Marketers Blame Global Crude Price Surge for Fuel Hike
Dangote Refinery and Petroleum Products Marketers have shifted the responsibility for the recent increase in the price of Premium Motor Spirit (PMS) to the global surge in crude oil prices, as Nigerians express growing concerns over the impact of the hike.
On Friday, Nigerians were met with a fresh rise in fuel prices across the country. Dangote Refinery, with its $20 billion facility, increased its ex-depot price from N899.50 per litre to N950 per litre, marking a 5 percent, or N50, increase. This adjustment led to retail prices spiking to between N970 and N1,150 per litre, up from the previous range of N935 to N1,100 per litre.
In particular, petrol sold at MRS filling stations—partners of Dangote Refinery—was priced at N970 per litre, a N35 increase from the previous rate of N935. Meanwhile, other stations linked to the Nigerian National Petroleum Company Limited (NNPC) have raised prices to N999 per litre, while independent stations have begun charging between N1,040 and N1,150 per litre nationwide.
Dangote Refinery and PETROAN Respond to Price Increase
Dangote Refinery has explained that the increase in PMS prices is directly tied to the recent surge in global crude oil prices. According to a statement issued by the refinery, the price of Brent crude has risen from $70 to $82 per barrel, driving up production costs. However, Dangote Refinery emphasized that it has absorbed half of the cost increase from the international market to keep the price hike relatively low.
The refinery clarified that had it passed on the full increase, petrol prices in some areas would have reached N1,150 to N1,200 per litre. Despite this, it maintained that the price adjustment still reflects only a fraction of the actual rise in crude prices, with the refinery absorbing the remaining logistics costs to ensure consistency across the nation.
“We wish to clarify that the recent adjustment in our ex-depot price of Premium Motor Spirit (Petrol) is directly related to the significant increase in global crude oil prices. As crude remains the primary input in the production of PMS, any fluctuation in its international price inevitably impacts the cost of the finished product,” stated the company.
Similarly, the Petroleum Tanker Drivers and Retail Outlets Association of Nigeria (PETROAN) echoed Dangote Refinery’s stance. PETROAN’s spokesperson, Joseph Obele, blamed the hike on the fluctuation of international oil prices, noting that retail prices are a reflection of the prices at which marketers acquire the fuel. According to the association’s National President, Billy Gillis-Harry, the increase is an unavoidable external factor.
Nigerians Express Frustration Over Price Hike
The latest fuel price hike has sparked frustration across the country, with many Nigerians fearing the wider impact on their daily lives. Prof. Theophilus Ndubuaku, Deputy President of the Nigeria Labour Congress Political Commission, warned that the price hike would exacerbate already high food prices and transportation fares. “This pump price hike will not only affect foodstuff and fares. There is also the problem of inflation and the value of the naira to contend with,” he stated.
Suleiman Abubakar, an Abuja resident, expressed concerns that the new prices would deepen economic hardship. “The coming days will be difficult for Nigerians. With the latest fuel hike, food items and transportation are bound to increase. It is painful that Dangote and petrol marketers are blaming crude oil prices, leaving Nigerians to contend with their fate,” he said.
As Nigerians brace for the ripple effects of the fuel price hike, the impact on inflation and daily expenses continues to be a major concern for many households.
