In a move that affects millions of Nigerian motorists and businesses, Dangote Refinery has set its new nationwide retail price for fuel at N970 per litre, with major distributors already aligning with the new pricing structure.
The price adjustment comes as global crude oil prices have surged from $70 to $82 per barrel, with Nigerian crude commanding an additional premium of $3 per barrel in international markets. Despite this 15% increase in global prices, Dangote Refinery has implemented a more modest 5% adjustment to its ex-depot price, now standing at N950 per litre, up from N899.50.
“While the increase in crude oil prices has been substantial, we have made a 5 percent adjustment to our ex-depot price. This is much lower than the 15 percent rise in global crude prices,” a Dangote Refinery spokesperson explained in an official statement.
Consumer Protection Measures
In what appears to be a consumer-focused approach, the refinery has confirmed that leading distribution partners – MRS Oil, Heyden, and Ardova – will maintain the N970 per litre price point across all states and the Federal Capital Territory. This nationwide pricing strategy aims to prevent geographical disparities that could disadvantage rural consumers.
“At Dangote Refinery, we remain fully committed to providing Nigerians with top-quality, affordable fuel,” the company stated, emphasizing its decision to absorb a significant portion of the increased costs rather than passing them entirely to consumers.
In a move toward greater transparency, Dangote Refinery has announced weekly publications of its: Ex-depot prices, Ex-vessel prices, Retail pump prices.
This initiative aims to empower consumers with precise pricing information and prevent potential exploitation in the distribution chain.
Government Support and Market Stability
The refinery acknowledged the positive impact of government policies, particularly praising President Bola Ahmed Tinubu’s Naira for Crude Initiative. “We are grateful to President Bola Ahmed Tinubu for the visionary Naira for Crude Initiative. This has been key in insulating Nigerians from the volatility of the international oil market,” the company noted.
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Fuel Price Market and Consumer Implications
For Nigerian consumers, the new pricing structure represents a delicate balance between global market pressures and local economic realities. The refinery’s decision to maintain the Single-Point Mooring (SPM) ex-vessel price at N895 per litre demonstrates efforts to stabilize the local market.
If You Ask Me
As global oil prices continue to fluctuate, Dangote Refinery’s pricing strategy suggests a long-term commitment to market stability. The weekly price publications will provide consumers and businesses with the transparency needed to make informed decisions about their fuel consumption and budgeting.
For the average Nigerian consumer, while the price increase may impact transportation and related costs, the refinery’s absorption of part of the global price surge offers some protection against more dramatic price spikes. The uniform nationwide pricing also ensures that consumers in remote areas won’t face additional geographical premiums.
The situation continues to evolve, and consumers are advised to stay informed through the refinery’s weekly price updates. These regular publications will serve as a reliable reference point for both individual consumers and businesses planning their fuel expenses.