Dangote raises diesel price to N1,850 as crude climbs toward $100

The Dangote Petroleum Refinery has raised its gantry price for Automotive Gas Oil (AGO), commonly known as diesel, by N100 to N1,850 per litre, as rising international crude prices and tightening refined-product supplies put fresh pressure on Nigeria’s downstream market.

The new price, which takes effect from 12:00 a.m. on Friday, represents a 5.7 percent increase from the previous N1,750 per litre, according to a note on Petroleumprice.ng.

It marks the second upward adjustment in the refinery’s diesel price in less than a month. The latest increase reverses some of the price relief seen earlier in August, when Dangote cut its diesel price by N80 to N1,570 per litre.

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The refinery subsequently raised prices to N1,750 before the latest adjustments. Despite these fluctuations in pricing, the refinery’s pricing has become increasingly important to marketers as its rates remain competitive with other Lagos depots.

The latest increase comes as global oil prices continue to rise amid renewed geopolitical tensions and concerns over petroleum supply.

As of 3.24 p.m. West Africa Time on Thursday, Brent crude was trading at $93.93 per barrel, while West Texas Intermediate stood at $89.40 per barrel.

Crude prices have been supported by heightened tensions in the Middle East and concerns over disruptions to oil flows. The tighter market is also coinciding with disruptions to refining operations in parts of the Middle East and Russia, adding pressure to the availability and cost of refined products.

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For Nigerian marketers, the latest Dangote adjustment could raise replacement costs and put pressure on diesel prices across depots and distribution channels.

The impact will be particularly significant for businesses that rely heavily on diesel to run generators, machinery and logistics operations.

Manufacturers, transport operators, and other businesses that depend on diesel-powered equipment could face higher operating costs if the increase is passed through the supply chain.

The development also underscores the continued exposure of Nigeria’s downstream market to global crude-price movements despite the growing role of domestic refining.

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