Diesel price: Dangote Refinery reverses recent cut, raises price to N1,800
Dangote Refinery has increased the gantry price of Automotive Gas Oil (AGO), commonly known as diesel, by ₦100 per litre, reversing part of a price reduction introduced earlier in the week.
A market survey on Saturday showed that the refinery raised its diesel price from ₦1,700 to ₦1,800 per litre, potentially increasing costs for businesses and other consumers that depend on the product.
The latest adjustment comes just three days after the refinery reduced its price from ₦1,780 to ₦1,700 per litre, representing an ₦80 cut.
Despite the upward revision, Dangote Refinery’s diesel remained cheaper than products sold by several independent depot operators.
As of Saturday, depot operators, including Pivot, African Terminal and Integrated, were reportedly selling diesel at approximately ₦1,905 per litre.
At ₦1,800 per litre, Dangote Refinery’s product was therefore ₦105 cheaper than the prices offered by those depots.
The price difference could influence purchasing decisions among diesel distributors and bulk buyers, although the final cost to consumers may vary depending on transportation, distribution and retail margins.
The refinery’s latest price increase could put additional pressure on retail diesel prices, particularly in Abuja and surrounding areas.
Diesel was reportedly selling for between ₦1,960 and ₦1,980 per litre in those locations as of Saturday.
Any further increase in supply costs could affect businesses that rely heavily on diesel-powered generators and equipment, potentially adding to their operating expenses.
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However, the extent to which the gantry price adjustment will affect retail prices remains uncertain.
Global Crude Oil Prices Remain Elevated
The development comes amid elevated crude oil prices in the international market, a factor that can influence the cost of petroleum products.
According to the report, Brent crude was trading at about $104 per barrel, while West Texas Intermediate (WTI) stood at approximately $91 per barrel.
Changes in crude oil prices, alongside other supply and distribution costs, can affect the pricing of refined petroleum products.
For diesel buyers, the latest adjustment means Dangote Refinery’s recent price relief has been partly reversed, even as its gantry price remains below the reported rates of several competing depots.
