Fuel Costs Increases Due to Global Oil Price Surge

ACNN NEWS
2 Min Read

Crude oil prices surged past $80 per barrel from $74 last week, prompting Dangote Petroleum Refinery to adjust its ex-depot price to ₦950 per litre, up from ₦895, while retail prices now range from ₦1,050 to ₦1,150 per litre across Lagos and nearby areas.

The Organisation of Petroleum Exporting Countries (OPEC) has projected a 3.1% global economic growth rate for 2025, signaling increased demand for crude oil. Major economies like China and India, key buyers of Nigerian crude, are expected to drive this demand. OPEC forecasts global growth will slightly accelerate to 3.2% in 2026, supported by inflation stabilization and policy adjustments. Notably, China’s growth is projected at 4.7% in 2025, while India’s remains robust at 6.5%.

Dangote Refinery attributed the price increase to the significant rise in crude prices, noting that crude is the primary input for producing petrol. Despite the 15% rise in global crude prices, the refinery limited its ex-depot price adjustment to 5%, maintaining its Single-Point Mooring (SPM) ex-vessel price at ₦895 per litre. Retail partners such as Ardova, Heyden, and MRS Holdings are providing petrol at ₦970 per litre nationwide, reflecting efforts to absorb increased logistics and production costs.

The refinery emphasized its commitment to affordability, stating that fully passing on the crude oil price surge would result in retail prices ranging from ₦1,150 to ₦1,200 per litre. In a bid for transparency, Dangote Refinery announced plans to publish its ex-depot, ex-vessel, and pump prices weekly to prevent exploitation.

The company also highlighted the impact of President Bola Ahmed Tinubu’s Naira-for-Crude Initiative, which has ensured steady access to high-quality petrol while protecting consumers from global market volatility. Dangote Refinery reaffirmed its mission to balance affordability and quality, prioritizing Nigerians’ interests amid fluctuating international oil prices.

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