Dangote Refinery Raises Diesel Price by N100, Announces New Rate
- Dangote Petroleum Refinery raised its diesel gantry price by N100 per litre, effective from midnight
- The new price of N1,670 per litre is N21 above the diesel landing cost but still N30 below what several Lagos depots currently charge
- Nigerian businesses that rely on diesel-powered generators could face higher operating costs if marketers pass on the increase
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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, with the new pricing taking effect from midnight on August 21.
The adjustment represents 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.
Source: Getty Images
How Dangote's New Price Compares
At N1,670 per litre, the refinery's diesel price sits N21 above the current diesel landing cost of N1,649 per litre, Petroleumprice.ng reports.
It remains N30 cheaper than the N1,700 per litre rate quoted by several Lagos depots on Thursday, including African Terminal, Integrated, Duport, Ibachem, Gulf Treasure and Pivot.
Marketers buying directly from Dangote still hold a cost advantage over those sourcing from those depots, though the gap has narrowed considerably after the latest adjustment.
What the Increase Means for Businesses
Diesel occupies a critical role in Nigeria's economy because of chronic gaps in the public electricity supply, with businesses across sectors depending 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.
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.
Source: UGC
Nigeria has leaned increasingly on Dangote's refinery to supply petroleum products locally as the facility expands its output capacity.
The new gantry rate could lead marketers to revisit their own pricing in the days ahead, with any wholesale increase likely to ripple into transport, manufacturing and power generation costs across the economy.
Market watchers will also be tracking whether competing suppliers adjust their rates in response.
Dangote new petrol price
Legit.ng earlier reported that the Dangote Petroleum Refinery may be heading toward another price revision after marketers linked to the facility began selling petrol above the refinery's official rate, with independent depots across several Nigerian cities also quoting higher figures.
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.
Source: Legit.ng
