Nigerians are facing renewed pressure on energy costs as diesel prices have experienced a significant surge across the country following a price adjustment by Dangote Refinery. The development reverses last week's brief price reduction and threatens to drive up transportation and manufacturing expenses.
Dangote Refinery Triggers Nationwide Price Increase
Dangote Refinery has increased its gantry price from ₦910 to ₦950 per litre, setting a new benchmark that other depot operators have quickly adopted. This marks one of the sharpest weekly increases in diesel prices since September, with market observers noting that Dangote's pricing decisions now establish the tone for private depots nationwide.
Fresh data from PetroleumPriceNG reveals that diesel prices across major depots in Lagos, Warri, and Port Harcourt have climbed from an average of ₦919 per litre last week to ₦983, representing a 7% weekly increase. Many private terminals scrambled to align with Dangote's new pricing, including those still holding older stock.
Regional Price Variations Show Warri Hardest Hit
In Lagos, operators including Obat Oil, Integrated Oil, Pinnacle, Ibachem, and AIPEC raised their prices to approximately ₦975 per litre, up from the previous range of ₦918–₦920. However, the most dramatic increases were recorded in Warri, where depots saw the steepest jump.
Warri depots including NIPCO, Optima, Rainoil, Prudent, and AYM Shafa moved their rates from ₦949 to as high as ₦1,054 per litre. Industry traders attribute this sharp increase to heightened demand from northern-bound distributors who prefer Warri for its shorter turnaround time, amplifying price pressure in the region.
Port Harcourt depots followed the upward trend, with facilities such as Bulk Strategic and Master Energy increasing diesel prices to between ₦990 and ₦995 per litre, up from the previous ₦978–₦981 range. Experts point to higher freight costs and reduced import activity through the eastern corridor as contributing factors.
Global Market Factors and Economic Implications
The local price hike coincides with rising crude oil costs in international markets. U.S. sanctions on major Russian oil companies have tightened supply, pushing crude benchmarks higher with Brent reaching $63.88 per barrel and WTI at $60.00. These higher crude prices have increased landing costs for Nigerian importers, translating to elevated depot prices nationwide.
Energy analysts are warning that if the current high diesel price trend continues, Nigeria could face rising logistics and manufacturing costs, potentially accelerating inflation as the year concludes. The development is already creating additional pressure on motorists, manufacturers, and logistics operators who depend heavily on diesel for their operations.
Meanwhile, Dangote Refinery continues to achieve production milestones, with Chief Branding and Communications Officer Tony Chiejine announcing that the facility is now trucking out over 70 million litres of petrol and diesel daily—a volume that exceeds Nigeria's total fuel consumption. The refinery's operations remain driven by goals of national energy security and consumer confidence, according to official statements.
