Dangote Refinery Hikes Diesel Price by ₦150 to ₦1,650 per Litre After Eight-Day Halt

Dangote Petroleum Refinery has resumed the sale of Automotive Gas Oil (AGO), commonly known as diesel, after an eight-day suspension. But marketers will now pay a higher price as the company raises its gantry rate to ₦1,650 per litre.

The latest pricing marks a ₦150 increase from the previous ₦1,500 per litre, a 10% rise. The new rate takes immediate effect as the refinery reopens diesel loading to marketers across the country, according to data obtained by Petroleumprice.ng.

Eight-Day Halt Disrupted Supply, Forced Marketers to Private Depots

The resumption follows an eight-day halt in diesel loading that disrupted supply and forced many marketers to source products from private depots at significantly higher prices. The temporary suspension came after changes to the refinery's marketing framework, tightening diesel availability in the domestic market and pushing up costs for distributors.

Industry stakeholders say the latest increase reflects the refinery’s rising replacement costs as international crude oil prices continue to surge. Global oil prices have remained under pressure amid renewed geopolitical tensions in the Middle East, increasing the cost of crude procurement for refiners worldwide.

Brent Crude at $97.76, WTI at $89.87 as Geopolitical Risks Keep Prices Elevated

As of Friday afternoon, Brent crude was trading at $97.76 per barrel, while West Texas Intermediate (WTI) stood at $89.87 per barrel. Although prices have eased slightly from recent peaks, the market continues to factor in geopolitical risks that have kept energy prices elevated.

Analysts note that the conflict has disrupted key shipping routes, leading to higher freight charges, rising insurance premiums and increased costs across the global oil supply chain. These developments have significantly affected refiners, including Dangote Refinery, whose production costs are closely tied to movements in international crude prices.

Higher Diesel Cost to Hit Manufacturers, Logistics Firms, and Small Businesses

Market participants expect the revised gantry price to trigger fresh adjustments in ex-depot diesel prices nationwide as distributors recalibrate their pricing to reflect the refinery’s new rate. The increase is also likely to impact businesses that rely heavily on diesel-powered operations, including manufacturers, logistics companies and small businesses already grappling with high operating costs.

Industry observers are now watching closely to see whether Dangote Refinery will review the prices of other refined petroleum products if crude oil prices remain elevated and replacement costs continue to climb. The latest adjustment underscores the growing influence of global oil market developments on domestic fuel pricing, even as the refinery continues its strategy of selling petroleum products in naira.

For the naira and Nigerian consumers, the diesel price hike adds pressure on production costs across the economy. Manufacturers and transporters will likely pass the higher fuel bill to consumers, keeping inflation elevated in the months ahead.