Dangote Refinery Reverses Diesel Price Cut, Hikes AGO to ₦1,700 per Litre
By Aboki Forex —
Dangote Petroleum Refinery has raised the ex-depot price of Automotive Gas Oil (AGO), commonly called diesel, from ₦1,600 to ₦1,700 per litre. The new price takes effect from May 27, 2026.
The decision comes just weeks after the refinery reduced the price, raising hopes of lower costs for businesses and transport operators. But rising global crude oil prices and the need to protect coastal traders from losses forced the reversal.
Industry sources told Petroleumprice.ng that many traders had already purchased diesel at higher prices and were holding large inventories. Maintaining the lower ex-depot price would have forced them to sell stock below cost, leading to heavy losses. By restoring the price to ₦1,700, the refinery aims to avoid disruptions in the diesel supply chain.
Market observers say the move reflects an effort to balance competitive pricing with market stability. Sudden price cuts create inventory challenges for distributors and retailers who absorb losses on products bought at higher rates.
For consumers and businesses that rely on diesel for transportation and power generation, the reversal means lower operating costs may not come soon. Diesel remains critical for manufacturers, logistics firms, construction companies and households that depend on generators due to persistent electricity supply problems.
Analysts believe the refinery's decision underscores the delicate balance between offering competitive fuel prices and maintaining stability in the downstream petroleum sector. Frequent price swings create uncertainty, disrupt inventory planning and hurt profit margins.
As Nigeria's refining landscape evolves, stakeholders will closely monitor future pricing decisions from Dangote Refinery and other suppliers. Global crude oil prices remain volatile, and the latest adjustment signals a focus on market stability and fairness across the supply chain.