The price of Automotive Gas Oil (AGO), commonly known as diesel, has climbed above ₦2,000 per litre in parts of Nigeria, intensifying cost pressures on businesses and households. A market survey conducted on Friday, September 4, 2026, showed diesel selling for between ₦2,000 and ₦2,020 per litre at AA Rano, Empire Energy, Ranoil, and other filling stations in Abuja and its environs.
This retail price represents an increase of about ₦220 to ₦300 per litre from the previous range of ₦1,700 to ₦1,800, depending on location and filling station. The rise has prompted concerns among manufacturers, logistics firms, and small businesses that rely heavily on diesel for generators and machinery.
Depot Prices Rise as Retail Costs Climb
The latest retail increase followed a rise in depot prices, with several operators reportedly moving their diesel prices to around ₦1,900 per litre. Depot operators including Ranoil Delta, Nigerian Independent Petroleum Company (NIPCO) Warri, Prudent Oghara, and Zamson were among those that reviewed their prices, according to PetroleumPriceNG.
The development comes against a backdrop of higher crude oil prices, which continue to influence the cost of refined petroleum products. Dangote Petroleum Refinery also raised its AGO gantry price by ₦100 per litre to ₦1,850, with the new rate taking effect from midnight on Friday. The increase was linked to elevated crude oil prices, with Brent trading around $94.74 per barrel and West Texas Intermediate (WTI) at about $90.34 at the time of reporting.
Some Lagos Depots Move in the Opposite Direction
While diesel prices increased at several locations, some major Lagos depots moved in the opposite direction. PetroleumPriceNG reported that Obat, Duport, T.Time, Ibeto, and Ibachem reduced their AGO prices to ₦1,790 per litre on Friday, September 4. This new rate is ₦60 below Dangote Refinery's ₦1,850 per litre gantry price.
The downward adjustments came less than 24 hours after Dangote Refinery announced its ₦100 increase, highlighting the different forces influencing prices across Nigeria's diesel market. According to the report, weak buying activity at the higher market price prompted some depot operators to cut their rates rather than pass the refinery's increase directly to customers.
What the Price Gap Means
The contrasting movements underline the importance of separating refinery, depot, and retail prices when tracking diesel costs in Nigeria. While some retailers in Abuja are charging more than ₦2,000 per litre, selected Lagos depots are selling below ₦1,850. The difference reflects transportation costs, location, margins, supply conditions, and local demand.
For businesses that depend heavily on diesel to power generators and machinery, the retail increase remains a concern. Diesel is widely used by manufacturers, telecommunications companies, logistics operators, hospitals, hotels, and small businesses that rely on alternative power sources.
Further price movements will likely depend on crude oil prices, import and domestic supply conditions, depot inventories, and the strength of demand across the market. For now, the Nigerian diesel market presents a striking picture: retail prices have breached ₦2,000 per litre in some areas, even as competition and weak demand push selected Lagos depots below Dangote Refinery's latest benchmark.
