Dangote, PETROAN Justify Fuel Price Hike, Nigerians Lament
Dangote Refinery and Petroleum Products Marketers have passed the buck of the recent increase in the price of premium motor spirit to global crude oil prices as Nigerians lament its effects.
This is as Nigerians raised concerns over the impact of the latest increase in fuel prices.
Naijaeyes reports that Nigerians woke up on Friday to a new PMS price across the country.
Consequently, the $20 billion Dangote Refinery raised its ex-depot prices by N50 or 5 percent from N899.50 to N950 per litre.
Later, the retail price of petrol rose to N970 and N1,150 from N935 and N1,100 per litre, respectively.
Specifically, at filling stations where there are direct sale deals with Dangote Refinery, including MRS filling stations, PMS sells for N970 a litre against N935.
Naijaeyes reports that retailer outlets of the Nigerian National Petroleum Company Limited now sell petrol at N999 per litre, up from N965. In contrast, other filling station outlets sell petrol between N1,040 and N1,150 nationwide.
Dangote Refinery, PETROAN shift blame
Reacting to the latest price hike, Dangote Refinery, in a statement by its spokesperson, Anthony Chijiena, explained that it is due to a significant surge in the global prices of crude.
The 650,000-barrels-per-day facility said the increase in the domestic price of petrol is in relation to the price hike of Brent crude to $82 per barrel from $70.
But Dangote Refinery explained that it has absorbed 50 percent of the cost increases in the international oil market.
This, the company added, means that the retail price for its petrol would have risen to between N1,150 and N1,200 per litre in some locations against the current price of N970 per litre.
We are constrained to state that the recent adjustment in the ex-depot price of Premium Motor Spirit, popularly called petrol, is informed by the substantial increase in the cost of crude oil in the international market. Since crude oil is the feedstock for the production of PMS, any fluctuation in its price automatically affects the price of the end product.
At Dangote Petroleum Refinery, we realize the critical importance of affordable fuel to all Nigerians, and we are committed to best value with guaranteed quality to our customers.”. Although we have adjusted our ex-depot price by 5% from N899.50 to N950 per liter, this increase is relatively low in comparison with a 15% increase in global crude oil prices that have gone up from $70 to $82 within days, and an additional premium of about $3 per barrel for Nigerian crude in the international market. Besides, Dangote Refinery maintained the SPM ex-vessel price at N895 per litre.
“All our partners, including Ardova, Heyden and MRS Holdings, will sell petrol to Nigerians at N970 per litre retailing price throughout the country. We have absorbed the increase in logistics cost to ensure a uniform price of the product across the 36 states and the FCT.
So far, Dangote Refinery has absorbed about 50 percent of the cost increases in the international oil market. This is because of our firm commitment to quality and affordability and because the refinery is owned by Nigerians and is at the heart of its mission. If Dangote Refinery were to fully pass on the increase in the price of crude oil to the market, the retail price of PMS would be about N1,150 to N1,200 per litre in some locations from the current price of N970 per litre.”
On their part, PETROAN, in a statement by its spokesperson, Joseph Obele, also blamed global oil prices for the recent hike in fuel prices.
The association observed, quoting its National President, Billy Gillis-Harry, that since international crude oil prices had gone up, it would definitely affect the domestic price. “It’s no longer funny; even retail outlet owners are affected by this up-and-down dwindling of prices. It affects our business.”
“Our selling rate always reflects our buying rate. Our members shouldn’t be blamed for the current increase; it’s an external factor,” he said.
Nigerians lament
Fuel price increase: Nigerians lament over new pump price.
Reacting, the Deputy President of the Nigeria Labour Congress Political Commission, Prof. Theophilus Ndubuaku, said the fresh fuel price hike will add to the already high prices of foodstuff 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, a resident of Abuja, noted that the coming days would be more difficult for Nigerians with the latest fuel price hike.
Naijaeyes report
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