Dangote refinery cuts diesel price to N1,600 per litre

Dangote Petroleum Refinery and Petrochemicals has reduced the gantry price of Automotive Gas Oil (AGO), popularly known as diesel, by N200 per litre as fresh imported petroleum shipments begin arriving in Nigeria.

The latest price adjustment lowers the refinery’s ex-depot diesel price from N1,800 per litre to N1,600 per litre.

Industry sources disclosed that the new pricing took effect on May 26, with many operators linking the move to rising competition in the downstream petroleum sector.

Confirming the development, the National Public Relations Officer of the Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, Mr. Joseph Obele, said the reduction followed the arrival of imported petroleum cargoes into the country.

According to him, the decision by Dangote refinery to lower its diesel price is being interpreted by stakeholders as part of the market response to renewed import activities by fuel marketers.

“Dangote Refinery recently instituted legal action after the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, approved import licences for some marketers to bring petroleum products into the country,” Obele said.

“Over the weekend, some of the vessels carrying imported products reportedly arrived, and shortly after, the refinery reduced the gantry price of diesel from N1,800 to N1,600 per litre.”

The development comes amid an ongoing dispute over the issuance and renewal of import licences by the NMDPRA to marketers and the Nigerian National Petroleum Company Limited, NNPCL.

Industry analysts said the diesel price cut could ease transportation and logistics costs if sustained, especially for manufacturers and businesses heavily dependent on diesel-powered operations.

The downward review also coincides with fluctuations in the international oil market, where crude oil prices have remained volatile following tensions in the Middle East.

Brent crude, the global oil benchmark, reportedly dropped to $95.05 per barrel on Wednesday from $98.04 recorded a day earlier.

Global oil prices have witnessed sharp swings since the outbreak of hostilities involving the United States, Israel and Iran earlier in the year, a development that disrupted critical supply routes, particularly around the Strait of Hormuz.

The strategic shipping channel, which handles a significant portion of global crude exports, was shut for weeks during the conflict, raising fears of supply shortages and pushing up international oil prices.

Although a temporary ceasefire agreement initially led to Iran reopening the Strait of Hormuz to commercial traffic, resulting in a sharp drop in oil prices, uncertainty in the region has continued to affect market stability.

Meanwhile, the United Arab Emirates, UAE, recently announced its withdrawal from the Organisation of the Petroleum Exporting Countries, OPEC, and the broader OPEC+ alliance after nearly six decades of membership.

Despite the development, analysts maintain that the ongoing diplomatic engagements between the United States and Iran remain central to the future direction of the global energy market.

On May 25, US President Donald Trump said negotiations between both countries were progressing positively.

In a post on Truth Social, Trump stated that the discussions were proceeding “in an orderly and constructive manner,” adding that both sides needed time to reach a workable agreement.

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