Dangote Petroleum Refinery has disclosed that it spent more than $4.48 billion procuring crude oil over the past two months, saying the unusually high feedstock costs explain why domestic petrol prices do not immediately mirror declines in international crude oil prices.
The refinery, which has cut the ex-depot price of Premium Motor Spirit (PMS) four times in the past month, said its latest pricing decisions reflect the gradual replacement of expensive crude inventories with cheaper cargoes rather than day-to-day movements in Brent crude prices.
In a rare disclosure, the 650,000 barrels-per-day refinery published detailed records of every crude cargo received in May and June, revealing the grades purchased, shipment volumes and landed costs in an effort to improve transparency around its pricing decisions.
The records showed that the refinery received 24 cargoes totalling 21.47 million barrels in May at a landed cost of $2.68 billion, representing an average procurement cost of $124.80 per barrel.
In June, it imported another 18.93 million barrels across 21 cargoes worth $1.80 billion, with the average landed cost falling to $95.25 per barrel.
