UK Diesel Crosses £2 Per Litre as Dangote Cuts Nigerian Wholesale Rate by ₦70

British diesel prices crossed the £2 per litre mark for the first time on Friday, October 2, while Dangote Petroleum Refinery cut its Nigerian wholesale gantry price by ₦70 to ₦1,780 per litre effective October 1.

UK average diesel price reached 200.01 pence per litre, up from 199.79p on Thursday, according to RAC data reported by the Financial Times. At an indicative exchange rate of about ₦1,762 to the pound, that works out to roughly ₦3,524 per litre. That figure is a currency conversion, not a Nigerian selling price.

UK pump price keeps climbing

The UK record followed Monday's breach of the previous high of 199.09p, set in June 2022 after Russia invaded Ukraine. RAC head of policy Simon Williams said the upward movement was showing no signs of slowing.

Higher fuel bills are set to deepen pressure on British households and businesses, especially those running diesel vehicles for commuting, deliveries and commercial operations.

Dangote cuts gantry rate by 3.8%

In Nigeria, Dangote Refinery lowered its diesel gantry price from ₦1,850 to ₦1,780 per litre, a reduction of about 3.8%. The new rate gives marketers a lower purchasing price at the refinery gate.

Competing Lagos depots quoted different rates as of the same period. Prudent listed diesel at ₦1,890 per litre, Rain Oil at ₦1,885 and Matrix at ₦1,880. Pinnacle quoted ₦1,850, while Eterna stood at ₦1,795. Ascon, Duport, Ibachem and Ibeto all quoted ₦1,800 per litre.

These are wholesale prices. They should not be compared directly with Britain's retail pump average, which carries a different tax structure and distribution market.

Relief for generators and trucks, with caveats

For Nigerian businesses running diesel generators and trucks, a lower gantry price could ease electricity and distribution costs if suppliers pass the cut through. The saving is straightforward on paper: a ₦70 reduction lowers the fuel cost of a 1,000-litre purchase by ₦70,000, before delivery charges and other costs.

Consumers may still see different prices depending on location, transport expenses, existing stock and retailers' margins. A refinery price cut does not guarantee an immediate, matching decline at every filling station.

Meanwhile, G7 countries have agreed to coordinate the release of 100 million barrels of oil and petroleum products through the International Energy Agency. The release starts immediately and runs over four months, with substantial diesel volumes prioritised within the first 20 days.

For Nigeria, any easing of international supply pressures could support better purchasing conditions, though domestic prices will also depend on exchange rates and distribution costs. Dangote Petroleum Refinery and major marketers had earlier cut petrol prices across several depots after a decline in international crude prices, raising expectations of cheaper fuel at filling stations.