Dangote Refinery Raises Diesel Price above N1,000 Amid Crude Oil Surge
- Dangote Refinery has increased its diesel ex-depot price by N170 per litre due to the rising cost of crude oil
- The hike follows a rise in crude oil prices in the global market, as a result of the conflict in the Middle East
- Analysts warn that further increases in petrol and diesel prices are possible if crude prices continue to rise
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Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
The Dangote Petroleum Refinery has increased its ex-depot price of Automotive Gas Oil (AGO), also known as diesel, from N880 per litre to N1,050 per litre.
Source: Getty Images
This hike of N170 is expected to influence pricing across private depots and bulk supply chains.
The renewed price pressure in Nigeria’s diesel market is influenced by rising global crude oil prices, largely attributed to the ongoing Middle East conflict and concerns over supply disruptions.
Crude oil crosses $80/barrel
Petroleumprice.ng reported that Brent crude was traded at $84.74 per barrel, representing a 9% increase.
With higher feedstock costs squeezing refinery margins, analysts note that price realignments at the gantry level were anticipated.
Diesel prices across private depots had already shown upward movement, with the average ex-depot price hovering around N1,150 per litre before the latest revision.
Fuel price hike to affect manufactured goods, transport
Market intelligence suggests that the new Dangote rate could serve as a reference point for secondary distribution pricing in major consumption hubs, potentially affecting transporters, manufacturers, and other large diesel users.
Loading activities were reportedly paused briefly as marketers reviewed their positions and awaited confirmation of the updated pricing structure. However, truck-out operations have since resumed under the revised framework.
Downstream analysts describe the current environment as a firm pricing cycle. They caution that if crude oil maintains its upward trajectory, additional increases across the diesel value chain may follow.
Stakeholders are therefore keeping a close watch on international oil benchmarks, given the strong correlation between global crude prices and domestic gantry rates.
Source: UGC
Dangote hikes petrol price amid Middle East conflict
The Dangote Refinery recently increased the gantry price of Premium Motor Spirit (PMS), otherwise known as petrol, by N100. The mega refinery increased the ex-depot price of petrol from N774 to N874 per litre, representing a N100 hike, and it takes effect immediately.
Depot owners have also started increasing prices after Dangote refinery announced its increase.
This comes after energy facilities in the Middle East were hit in the exchange of missiles between Iran and Israel, backed by the United States.
Experts warn petrol, diesel prices may rise in Nigeria
Legit.ng earlier reported that energy experts predicted a hike in petroleum products in Nigeria, as a result of the war between Iran and Israel/U.S.
An expert noted that although the Petroleum Industry Act prioritises domestic refineries in crude allocation, more than 60 per cent of the Dangote refinery’s feedstock is reportedly sourced from abroad, while about 40 per cent of refined products consumed locally are still imported.
He added that although higher oil prices may boost government revenue, Nigerians could face higher pump prices if global benchmarks surge.
Source: Legit.ng
