The Dangote Petroleum Refinery has lowered its Automotive Gas Oil (AGO) price by N80 per litre, bringing its diesel gantry rate down from N1,780 to N1,700, a reduction of roughly 4.5%. The new pricing takes effect on Wednesday, October 7, 2026, according to a formal notice sent to customers.
Refinery Announces Price Cut Amid Falling Import Costs
The refinery also stated that credit values for all unloaded gantry volumes affected by the price adjustment would be communicated to customers separately. This latest move follows a sharp drop in Nigeria's estimated diesel import-parity costs, which fell by N127.28 per litre in just two days.
Data from the Major Energies Marketers Association of Nigeria (MEMAN) showed that the estimated spot landing cost for diesel declined from N1,823.68 per litre on September 30 to N1,696.40 per litre on October 2. MEMAN's Energy Bulletin also indicated that the seven-day average AGO import-parity cost dropped from N1,871.34 per litre to N1,823.19 per litre over the same period.
Global Crude Prices Weaken, Supporting the Reduction
The price cut reflects softer conditions in both local and international energy markets. As of 6:10 p.m. WAT on Tuesday, October 6, Brent crude was trading at $98.34 per barrel, down $1.98 or 1.97%, while West Texas Intermediate stood at $87.90 per barrel, a decline of $1.53 or 1.71%.
At N1,700 per litre, Dangote's wholesale diesel price now sits close to MEMAN's estimated import-parity cost of N1,696.40 per litre, narrowing the gap between refinery pricing and import economics.
What the Price Cut Means for Businesses and Consumers
The adjustment could offer some breathing room for businesses, transport operators, and industries that depend heavily on diesel to power generators and equipment. However, what consumers ultimately pay at the point of sale will still be shaped by transportation, storage, and distribution costs along the supply chain.
Marketers may also need to review their own pump prices as the lower refinery rate takes hold, particularly if competing suppliers follow suit and adjust their rates accordingly. The latest cut is another in a series of price movements by Dangote Refinery as it responds to volatility in international crude markets.
Context: Diesel Prices Rose Sharply in Recent Months
Earlier, the National Bureau of Statistics (NBS) disclosed that the average retail price of Automotive Gas Oil (AGO), commonly known as diesel, increased by 86.40% year-on-year to N3,277.47 per litre. According to the latest diesel price watch report released by the statistics agency, the figure rose from N1,758.26 per litre recorded previously.
The report also showed that diesel prices increased by 32.44% on a month-on-month basis, rising from N2,474.69 per litre. This latest reduction by Dangote Refinery may signal a shift toward lower prices, but the final impact will depend on how quickly marketers pass on the savings to consumers.
