Dangote cuts diesel price to N1,700 as crude, import costs fall

Dangote Petroleum Refinery has cut the price of automotive gas oil (AGO), commonly known as diesel, by N80 per litre, reducing its gantry price from N1,780 to N1,700 as international crude prices and diesel import-parity costs decline.

According to a notice issued by the refinery to its customers, the new price, representing a 4.5 per cent reduction, takes effect from today.

The latest adjustment is the second reduction in Dangote Refinery’s diesel price within a month and comes as lower crude prices and softer import-parity costs ease the cost of diesel supply in the domestic market.

Data from the Major Energies Marketers Association of Nigeria (MEMAN) showed that the estimated spot landing cost of diesel fell by N127.28 per litre in two days, from N1,823.68 on September 30 to N1,696.40 on October 2.

MEMAN’s Energy Bulletin also showed that the seven-day average AGO import-parity cost declined from N1,871.34 to N1,823.19 per litre over the same period.

The decline in import costs coincided with movements in international crude prices.

Data from OilPrice.com as of 4:55 pm yesterday showed Brent crude was trading at $98.48 per barrel, down 1.83 per cent, while West Texas Intermediate (WTI) stood at $88.23, representing a 1.34 per cent decline.

The latest price puts its N1,700 per litre gantry price just N3.60 above MEMAN’s N1,696.40 spot import-parity cost recorded on October 2.

The narrowing gap suggests that locally refined diesel is becoming increasingly competitive with imported supplies, potentially putting pressure on depot and bulk diesel suppliers to reassess their replacement costs.

In its notice to customers, Dangote Refinery said corresponding credit values on all unloaded gantry volumes affected by the downward price adjustment would be communicated separately.

MEMAN’s October 2 bulletin also put the seven-day average Brent price at $103.89 per barrel, while WTI stood at $91.98 and Bonny Light at $121.08, reflecting the movement in crude benchmarks that has fed into changing petroleum product costs.