The Dangote Group has confirmed an increase in the ex-depot price of Premium Motor Spirit (PMS), citing a significant rise in global crude oil prices as the main factor.
The depot price at Dangote Refinery has been adjusted from N899.50 to N955 per litre, effective Friday. The announcement, confirmed by oil marketers and detailed in a statement from the company’s head of branding and communications, Anthony Chiejina, tempered the optimism that followed the refinery’s earlier decision to cut PMS prices .
The unexpected price hike comes just weeks after the Dangote Refinery slashed PMS prices, a move that had been widely welcomed as a relief to Nigerians struggling with high fuel costs. This initial decision had fueled hopes for stability and affordable prices in the fuel market. However, the recent increase has sparked concerns among consumers, who fear it could be a sign of a a model of the fluctuation of fuel prices linked to the volatility of the global oil market.
Tekedia Mini-MBA edition 16 (February 10 – May 3, 2025) opens registrations; register today for early bird discounts.
Tekedia Masterclass on AI in Business open registrations here.
Join Tekedia Capital Syndicate and meninvest in the best startups in Africa here.
“As we strive to deliver value and quality to our customers, the recent adjustment in our PMS ex-depot price is directly linked to the significant increase in global crude oil prices. Crude remains the main input for PMS production, and any fluctuation in its international price inevitably impacts the cost of the finished product,” the company explained.
The press release highlights that the price of Brent crude, the global benchmark, has jumped more than 12% in recent weeks, from $70 to $82 per barrel. Nigerian crude oil carries an additional premium of around $3 per barrel. Dangote Refinery highlighted that its 5% adjustment in PMS price is significantly lower than the 15% rise in global crude oil prices over the same period, reflecting its commitment to mitigating the impact on Nigerian consumers.
Prize distribution
The company provided the following details regarding its current PMS pricing structure:
- Ex-ship price of Single Point Mooring (SPM): N895 per liter
- Price at depot: N955 per liter
- Retail price by partners: N970 per liter
Major distribution partners such as Ardova, Heyden and MRS Holdings are expected to maintain a uniform pump price of N970 per liter across the 36 states of the country and the Federal Capital Territory (FCT).
Market analysts have pointed out that the link between international crude oil prices and local fuel costs is inevitable amid the deregulation of Nigeria’s oil market. As global oil prices fluctuate, they expect PMS prices in Nigeria to reflect these changes.
This dynamic poses a challenge for consumers, who are already struggling with high inflation and rising costs of living. It also highlights the volatility that could define fuel prices in the months to come.
The Dangote Group has sought to ease some of the financial burden by absorbing about 50% of the increased costs associated with rising global crude oil prices. Without these interventions, the retail price of PMS could have increased to between N1,150 and N1,200 per liter in some areas, according to the company.
“Our unwavering commitment to quality and affordability remains at the heart of our mission. By absorbing significant cost increases, we ensure that Nigerians continue to access high-quality PMS at prices that are as fair as possible under current market conditions,” the statement said.
To promote transparency and protect consumers against price exploitation, the Dangote Group announcement plans to publish weekly updates on its ex-depot, ex-ship and pump prices. This initiative aligns with the company’s values of responsibility and good governance.
The company also commended President Bola Tinubu for launching the Naira Crude Initiative, which it credits for ensuring consistent access to high-quality PMS while protecting Nigerians from the extreme volatility of global oil markets .
With Brent prices Currently At the highest since October 2024, driven by new US sanctions against the Russian oil industry, analysts warn that further price increases cannot be ruled out.
