The Dangote Group has confirmed a hike in the ex-depot price of Premium Motor Spirit (PMS), citing a significant rise in global crude oil prices as the primary driver.

The depot price at the Dangote Refinery has been adjusted from N899.50 to N955 per liter, effective Friday. This announcement, confirmed by oil marketers and detailed in a statement by the company’s Branding and Communications Officer, Anthony Chiejina, has tempered the optimism that followed the refinery’s earlier decision to reduce PMS prices.

The unexpected price hike comes just weeks after Dangote Refinery had slashed PMS prices, a move that had been widely welcomed as a relief for Nigerians grappling with high fuel costs. That initial decision had fueled hopes of stability and affordability in the fuel market. However, the recent increase has raised concerns among consumers, who fear that this could signal a pattern of fluctuating fuel prices tied to global oil market volatility.

“While we strive to deliver value and quality to our customers, the recent adjustment in our ex-depot price of PMS is directly linked to the significant increase in global crude oil prices. Crude remains the primary input for PMS production, and any fluctuation in its international price inevitably impacts the cost of the finished product,” the company explained.

The statement noted that the price of Brent crude, the global benchmark, has surged by over 12% in recent weeks, climbing from $70 to $82 per barrel. Nigerian crude oil carries an additional premium of about $3 per barrel. Dangote Refinery highlighted that its 5% adjustment in PMS price is notably lower than the 15% rise in global crude oil prices over the same period, reflecting its commitment to mitigating the impact on Nigerian consumers.

Price Breakdown

The company provided the following details regarding its current PMS pricing structure:

• Single-Point Mooring (SPM) ex-vessel price: N895 per liter
• Depot Price: N955 per liter
• Retail price by partners: N970 per liter

Key distribution partners such as Ardova, Heyden, and MRS Holdings are expected to maintain a uniform pump price of N970 per liter across the country’s 36 states and the Federal Capital Territory (FCT).

Market Analysts Predict Volatility in Fuel Prices

Market analysts have pointed out that the linkage between international crude oil prices and local fuel costs is inevitable under Nigeria’s deregulated petroleum market. As global oil prices fluctuate, they expect PMS prices in Nigeria to mirror these changes.

This dynamic poses a challenge for consumers, who are already struggling with high inflation and the rising cost of living. It also highlights the volatility that could define fuel pricing in the months ahead.

The Dangote Group has sought to alleviate some of the financial burden by absorbing approximately 50% of the increased costs associated with global crude oil price hikes. Without these interventions, the retail price of PMS could have surged to between N1,150 and N1,200 per liter in certain regions, according to the company.

“Our unwavering commitment to quality and affordability remains central to 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 noted.

To foster transparency and protect consumers from price exploitation, the Dangote Group announced plans to publish weekly updates on its ex-depot, ex-vessel, and pump prices. This initiative aligns with the company’s values of accountability and good governance.

The company also commended President Bola Tinubu for introducing the Naira for Crude Initiative, which it credits for ensuring consistent access to high-quality PMS while shielding Nigerians from extreme volatility in global oil markets.

With Brent crude prices currently at their highest since October 2024, driven by new U.S. sanctions on Russia’s oil industry, analysts warn that further price hikes cannot be ruled out.