Dangote Refinery Cuts Diesel Price by N120 as Petrol Landing Cost Falls to N1,072
- Dangote Refinery cut its diesel gantry price by ₦120 per litre, easing costs for marketers and businesses
- Imported petrol landing cost fell to about ₦1,072 per litre, widening the gap with domestic wholesale prices
- Dangote has not cut petrol prices, leaving Nigerians watching to see if lower import costs bring relief at filling stations
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Dangote Petroleum Refinery has reduced its Automotive Gas Oil (AGO), popularly known as diesel, gantry price by ₦120 per litre, raising expectations of a possible petrol price reduction as the landing cost of imported petrol continues to decline.
The refinery lowered its diesel price from ₦1,840 to ₦1,720 per litre, representing a 6.5% reduction and offering potential relief to marketers, manufacturers and businesses struggling with high energy costs.
Source: Getty Images
The development comes as the estimated landing cost of imported Premium Motor Spirit (PMS), commonly called petrol, has fallen to approximately ₦1,072 per litre, widening the gap between import costs and domestic wholesale prices, according to a report by PetroleumPriceNG.
Dangote reverses earlier diesel price increase
The latest adjustment reverses an earlier increase that pushed Dangote's diesel gantry price from ₦1,800 to ₦1,840 per litre following rising international crude oil prices.
The increase coincided with supply disruptions at the refinery, including the temporary suspension of diesel loading operations.
During the period, diesel depot prices in Lagos and Warri climbed to as high as ₦1,900 per litre, putting additional pressure on businesses dependent on diesel-powered generators and transportation.
With the new ₦1,720 gantry price, marketers purchasing directly from the refinery could benefit from lower procurement costs.
However, the extent of the reduction at filling stations will depend on transportation expenses, distribution margins and existing inventories.
Petrol landing cost raises fresh expectations
Meanwhile, declining petrol import costs have intensified attention on Dangote Refinery's PMS pricing.
According to the Major Energies Marketers Association of Nigeria (MEMAN), estimated petrol import parity on November 5 stood at ₦1,072.72 per litre at ASPM Jetty and ₦1,071.72 at NPSC-NOJ Jetty, both in Apapa, Lagos.
The figures were significantly below the 30-day average import parity of ₦1,252.02 per litre, reflecting changes in international petroleum prices.
The decline could strengthen competition between imported petrol and locally refined products, potentially encouraging suppliers to review their wholesale prices.
However, import parity is an estimate rather than a guaranteed retail price, and marketers must still account for distribution and operating costs.
Source: Getty Images
Will petrol prices fall for Nigerians?
The diesel reduction has renewed interest in whether Dangote Refinery will announce a corresponding petrol price adjustment.
Lower petrol prices would offer relief to households, transport operators and businesses facing elevated fuel expenses.
They could also help reduce transportation and logistics costs, which influence the prices of goods and services nationwide.
Nevertheless, Dangote Refinery has not announced a fresh petrol price reduction alongside the latest diesel adjustment.
For now, consumers will be watching whether falling international fuel costs and stronger market competition translate into cheaper petrol at Nigerian filling stations.
Dangote cuts petrol price to N1,215
Legit.ng earlier reported that Nigerian motorists could soon enjoy some relief at filling stations as the Dangote Petroleum Refinery's latest petrol price reduction raises expectations of cheaper fuel across the country.
The refinery has reportedly reduced its Premium Motor Spirit (PMS) gantry price to ₦1,215 per litre, a development expected to influence retail prices at Nigerian National Petroleum Company Limited (NNPCL), MRS and other filling stations.
Source: Legit.ng
