Revealed: Why Dangote Refinery increased diesel price
Dangote Refinery has resumed diesel sales, increasing the price to ₦1,650 per litre. This change comes after an eight-day halt and is driven by rising crude oil costs.
- Dangote Petroleum Refinery resumed diesel sales after an eight-day halt, but marketers will now pay more at the loading gantry
- The new gantry price marks a ₦150 rise from the previous rate, driven by climbing international crude oil costs
- The price change is expected to push up ex-depot diesel prices nationwide, hitting manufacturers and small businesses hard
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Dangote Petroleum Refinery has resumed the sale of Automotive Gas Oil (AGO), commonly known as diesel, after an eight-day suspension, but marketers will now pay a higher price as the company raises its gantry rate to ₦1,650 per litre.
The latest pricing marks a ₦150 increase from the previous ₦1,500 per litre, representing a 10% rise, according to data obtained by Petroleumprice.ng.
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Dangote raises diesel price after sales suspension
The resumption follows an eight-day halt in diesel loading that disrupted supply and forced many marketers to source products from private depots at significantly higher prices.
The temporary suspension came after changes to the refinery's marketing framework, tightening diesel availability in the domestic market and pushing up costs for distributors.
Industry stakeholders say the latest increase reflects the refinery's rising replacement costs as international crude oil prices continue to surge.
Rising crude oil prices drive higher costs
Global oil prices have remained under pressure amid renewed geopolitical tensions in the Middle East, increasing the cost of crude procurement for refiners worldwide.
As of Friday afternoon, Brent crude was trading at $97.76 per barrel, while West Texas Intermediate (WTI) stood at $89.87 per barrel.
Although prices have eased slightly from recent peaks, the market continues to factor in geopolitical risks that have kept energy prices elevated.
Analysts note that the conflict has disrupted key shipping routes, leading to higher freight charges, rising insurance premiums and increased costs across the global oil supply chain.
These developments have significantly affected refiners, including Dangote Refinery, whose production costs are closely tied to movements in international crude prices.
Higher diesel prices may ripple across the market
Market participants expect the revised gantry price to trigger fresh adjustments in ex-depot diesel prices nationwide as distributors recalibrate their pricing to reflect the refinery's new rate.
The increase is also likely to impact businesses that rely heavily on diesel-powered operations, including manufacturers, logistics companies and small businesses already grappling with high operating costs.
Industry observers are now watching closely to see whether Dangote Refinery will review the prices of other refined petroleum products if crude oil prices remain elevated and replacement costs continue to climb.
The latest adjustment underscores the growing influence of global oil market developments on domestic fuel pricing, even as the refinery continues its strategy of selling petroleum products in naira.
Dangote increases petrol price
Legit.ng earlier reported that Dangote Petroleum Refinery has resumed coastal loading of Premium Motor Spirit (PMS) following a six-day halt, but marketers are now paying a significantly higher price for the product.
The refinery began accepting coastal loading orders again on Monday, July 21, after notifying customers on Tuesday of the new terms.
The resumption comes after the facility suspended both coastal and gantry loading on Wednesday, July 15, when it switched to a dollar-denominated pricing model for refined petroleum products.
- Legit Original article
