Dangote refinery raises diesel gantry price by N100 to N1,670 per litre
By Aboki Forex —
Dangote Petroleum Refinery has increased its Automotive Gas Oil (AGO) pump-out price by N100 per litre, moving the rate from N1,570 to N1,670. The new pricing took effect from midnight on August 21.
The adjustment is a 6.4% rise and reverses a period during which the refinery had held its diesel price steady. Pricing information seen on Thursday confirmed the new gantry rate.
New price and market comparison
At N1,670 per litre, the refinery's diesel price sits N21 above the current diesel landing cost of N1,649 per litre, according to Petroleumprice.ng. It remains N30 cheaper than the N1,700 per litre rate quoted by several Lagos depots on Thursday. Those depots include African Terminal, Integrated, Duport, Ibachem, Gulf Treasure and Pivot.
Marketers buying directly from Dangote still hold a cost advantage over those sourcing from the depots, though the gap has narrowed considerably after the latest adjustment.
Impact on businesses
Diesel occupies a critical role in Nigeria's economy because of chronic gaps in public electricity supply. Businesses across sectors depend on generators to keep operations running.
Transport companies, manufacturers, telecoms operators, construction firms and other diesel-reliant businesses could see their operating costs climb if the price increase flows through to the retail level. Marketers buying directly from Dangote may also revisit their own pricing in the days ahead.
Crude oil and market outlook
The adjustment comes as global crude oil markets remain under pressure. Brent crude has recently traded above $93 a barrel, driven by geopolitical tensions linked to Iran and disruptions around the Strait of Hormuz. Movements in international crude prices typically feed into the cost of refined products and can set a benchmark for domestic suppliers.
Nigeria has leaned increasingly on Dangote's refinery to supply petroleum products locally as the facility expands its output capacity. Market watchers will also be tracking whether competing suppliers adjust their rates in response.
Legit.ng earlier reported that the Dangote refinery may be heading toward another price revision after marketers linked to the facility began selling petrol above the refinery's official rate. Dangote-linked marketers were selling petrol at N1,168 per litre on Thursday, August 13, N3 above the refinery's official gantry price of N1,165.
For Nigerian businesses, the diesel increase means higher energy costs unless marketers absorb the difference. If passed on, the wholesale increase is likely to ripple into transport, manufacturing and power generation costs across the economy, and consumers could feel it in the prices of goods and services.