Dangote Petroleum Refinery has suspended loading of Automotive Gas Oil (AGO), commonly known as diesel, at its gantry, triggering fears of another price increase as international crude oil prices climb towards $116 per barrel. The suspension, which began at approximately 3:00 am on Saturday, has put petroleum marketers on alert, with several depot operators in Lagos and Warri already adjusting their selling prices to as high as ₦1,900 per litre.
Suspension of Diesel Loading at Dangote Refinery
According to Petroleumprice.ng, the suspension comes amid mounting pressure on domestic fuel prices following a sharp increase in global crude oil prices. Although Dangote Refinery has yet to announce a new diesel price or officially explain the suspension, industry operators believe a price review could be imminent.
An industry source familiar with the development linked the suspension to rising international crude oil prices, which have increased the cost pressures facing refiners and petroleum marketers. A truck driver familiar with operations at the refinery disclosed that diesel loading was halted at approximately 3:00 am on Saturday. The driver explained that the suspension affected only diesel operations, while petrol loading continued. According to the source, the refinery had loaded all the Premium Motor Spirit (PMS) available at the gantry before diesel operations were suspended.
Depot Operators in Lagos and Warri Raise Diesel Prices
Meanwhile, checks by Petroleumprice.ng revealed that several depot operators had already increased their diesel prices ahead of a possible adjustment by Dangote Refinery. In Warri, Delta State, Matrix depot quoted diesel at ₦1,900 per litre, while Rain Oil offered the product at ₦1,830 per litre. A similar trend emerged in Lagos, where Wosbab and Prudent depots sold diesel at ₦1,900 per litre. Other operators, including Pivot, Integrated and Duport, quoted ₦1,850 per litre.
The adjustments, some of which began on Friday, reflect growing concerns among marketers over the potential cost of replenishing their diesel inventories. The development has heightened speculation that the refinery could announce revised diesel prices in response to changing market conditions, according to a report by PetroleumPriceNG. However, there has been no official confirmation that the loading suspension was intended to facilitate a price increase.
Crude Oil Surge and Impact on Nigerian Businesses
The latest developments coincide with Brent crude trading around $116 per barrel, raising concerns about further increases in domestic petroleum product prices. Higher crude oil prices typically increase refining and replacement costs, particularly for operators purchasing crude or refined products at prevailing international market rates.
For Nigerian businesses that depend heavily on diesel-powered generators, transportation and industrial equipment, further price increases could translate into higher operating expenses. Manufacturers, logistics operators and small businesses may face additional financial pressure if wholesale price increases are passed on to consumers. However, the eventual impact will depend on Dangote Refinery's pricing decisions, domestic supply conditions and competition among depot operators.
Marketers Await Dangote's Next Move
With diesel loading temporarily suspended, marketers are closely watching the refinery for an official announcement on when operations will resume and whether prices will change. A higher gantry price could prompt further adjustments across depots, potentially affecting retail diesel prices nationwide. For now, the refinery's silence and rising depot prices have left operators uncertain about the next direction of Nigeria's diesel market.
