Dangote Refinery Cuts Diesel Price by N120 to N1,720 Per Litre

Dangote Petroleum Refinery has cut the gantry price of Automotive Gas Oil (AGO), better known as diesel, by N120 per litre. The price fell from N1,840 to N1,720 per litre, a 6.5% reduction that offers relief to marketers, manufacturers and businesses battling high energy costs.

The cut comes as the estimated landing cost of imported petrol dropped to about N1,072 per litre, widening the gap between import costs and domestic wholesale prices.

Why the price came down

The new pricing reverses an earlier increase that took Dangote's diesel gantry price from N1,800 to N1,840 per litre after international crude oil prices rose. That increase coincided with supply disruptions at the refinery, including the temporary suspension of diesel loading operations. During that period, diesel depot prices in Lagos and Warri climbed to as high as N1,900 per litre, piling pressure on businesses that run on diesel generators and trucks.

With the N1,720 gantry price, marketers buying directly from the refinery should pay less for stock. How much of that reaches the pump will depend on transport costs, distribution margins and the inventory marketers are still holding.

Petrol import cost falls below N1,100

The fall in petrol import costs has sharpened attention on Dangote Refinery's petrol pricing. According to the Major Energies Marketers Association of Nigeria (MEMAN), estimated petrol import parity on November 5 stood at N1,072.72 per litre at ASPM Jetty and N1,071.72 at NPSC-NOJ Jetty, both in Apapa, Lagos.

Both figures sit well below the 30-day average import parity of N1,252.02 per litre, reflecting movement in international petroleum prices.

The decline could push competition between imported petrol and locally refined product, and nudge suppliers to review wholesale prices. Import parity is only an estimate, though, not a guaranteed retail price. Marketers still carry distribution and operating costs.

Petrol price still unchanged

Dangote Refinery has not announced a fresh petrol price cut alongside the diesel adjustment, even after reports that its petrol gantry price was reduced to N1,215 per litre, a move expected to influence pump prices at Nigerian National Petroleum Company Limited (NNPCL), MRS and other filling stations.

Lower petrol prices would ease the burden on households, transport operators and businesses facing high fuel costs. They would also trim transport and logistics costs, which feed into the prices of goods and services across the country.

For now, the diesel cut is the concrete gain. Consumers will be watching to see whether falling international fuel costs and stronger competition pull petrol prices down at filling stations.

For Nigerian businesses, cheaper diesel means lower running costs for generators, factories and haulage. If the refinery extends the cut to petrol, the relief would reach far more pockets, and could soften the transport costs that shape market prices nationwide.