The Organisation of Petroleum Exporting Countries, OPEC, has put its 2025 economic growth at 3.1 per cent, painting a picture of high crude demand, which could culminate in higher prices of crude, increased refining cost and high prices of petrol and other petroleum products.
With the rise in crude oil prices to more than $80 per barrel from $74 per barrel last week, Dangote Petroleum Refinery increased its wholesale price to N950 per litre from N895 per litre, while retail prices rose between N1, 050 and N1, 150 per litre, depending on location in Lagos and its environs. According to OPEC report, the high demand for crude oil will be driven by economic expansion in some countries, including China and India, major buyers of Nigeria’s crude oil.
The report stated: “Global economic growth is forecast to grow at 3.1% in 2025, accelerating slightly to 3.2% in 2026. This positive outlook is underpinned by anticipated inflation normalization and corresponding adjustments to monetary policies in major economies. “The services sector is expected to remain the main driver of growth, supported by a gradual rebound in industrial production. For the US, the economic growth forecast in 2025 is revised upward to 2.4%, with 2026 forecast at 2.3%.
“China’s economic growth forecast for 2025 remains at 4.7%, with the economic growth forecast for 2026 at 4.6%. India’s economic growth forecast is revised up to 6.5% for 2025 and also expected to expand at the same level in 2026. “Brazil’s economic growth forecast for 2025 is revised up to 2.3% and is expected to rise further to 2.5% in 2026. Russia’s economic growth forecast for 2025 is revised up to 1.9% and is expected to grow by 1.5% in 2026.” Dangote Refinery attributes new ex-depot price to surge in crude prices Meanwhile, Dangote Petroleum Refinery, yesterday, attributed the recent ex-depot price adjustment to high prices of crude oil in the global market.
The company said in a statement: “We wish to clarify that the recent adjustment in our ex-depot price of Premium Motor Spirit (petrol) is directly related to the significant increase in global crude oil prices. ‘As crude remains the primary input in the production of PMS, any fluctuation in its international price inevitably impacts the cost of the finished product.
“At Dangote Petroleum Refinery, we recognise the critical importance of affordable fuel for all Nigerians, and we remain committed to offering the best value with guaranteed quality to our customers. ‘’While we have made a 5% adjustment to our exdepot price from N899.50 to N950 per litre, it is important to note that this increase is considerably lower than the 15% rise in global crude oil prices, which has seen Brent Crude rise from $70 to $82 in a matter of days, in addition to the premium for Nigerian crude (approximately $3 per barrel) in international markets. Furthermore, Dangote Refinery has maintained the Single-Point Mooring (SPM) ex-vessel price at N895 per litre. “All our partners, including Ardova, Heyden, and MRS Holdings, will offer petrol to Nigerians at a retail price of N970 per litre nationwide. We have absorbed the increased logistics costs to guarantee uniform pricing across the 36 states of the federation and the Federal Capital Territory, FCT. “Dangote Refinery has absorbed approximately 50% of the cost increases in the international oil market. This is due to our unwavering commitment to quality and affordability, as well as the ownership of the refinery by Nigerians, which remain central to our mission. ‘’If Dangote Refinery were to pass on the entire increase in the price of crude oil to the market, the retail price of PMS would be approximately N1,150 to N1,200 per litre in some locations, compared to the current price of N970 per litre. “We are committed to providing reliable, top-quality petrol to the Nigerian people at competitive prices. In these challenging times, we continue to prioritise the best interests of Nigerians, striving to shield consumers from the full impact of global price volatility while adapting to evolving market conditions. “We sincerely appreciate the continued trust and support of Nigerians as we strive to deliver the best value for their money and contribute to the development of a self-sufficient economy that is resilient to international price fluctuations. “In the interest of transparency and good governance, Dangote Refinery will commence publishing its ex-depot price, ex-vessel price as well as pump price on a weekly basis so that consumers are not exploited. “We would like to express our gratitude to President Bola Ahmed Tinubu for the introduction of the visionary Naira-for-Crude Initiative. This groundbreaking initiative has enabled consistent access to high-quality PMS for all Nigerians, while also insulating the Nigerian consumers from the volatility of the global oil market.”
Peoplesmind
