Dangote refinery defends petrol price increases amid rising costs and market volatility
The Dangote Petroleum Refinery has justified its recent fuel price hikes, citing the cost of previously purchased crude oil and the extensive process of acquiring, shipping, and delivering crude. This explanation comes as petrol prices across Nigeria have climbed to between N1,310 and N1,400 per litre. The refinery increased its Premium Motor Spirit PMS gantry price by N65 per litre to N1,265, effective August 29, marking the third increase in eight days. A senior executive from Dangote refinery, speaking anonymously, clarified that current global crude prices do not solely dictate the cost of petrol, due to the time lag between crude purchase and processing. The executive detailed the complex logistics of crude procurement, including transaction completion, securing loading windows, chartering vessels, and sailing times, all of which influence the final cost. The refinery also noted that large quantities of crude purchased at higher prices remain in storage, making immediate price reductions based on declining international benchmarks economically unfeasible. The refinery's gantry price has risen by N100 per litre in eight days, an 8.6 percent increase. Petroleum marketers have expressed concerns about the market's volatility, which complicates business planning. Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, highlighted challenges such as government policies, international market dynamics, and exchange rates cont
