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Dangote Refinery has increased the gantry price of Automotive Gas Oil (AGO), popularly known as diesel, to N1,800 per litre, just three days after reducing the price to N1,700.
A market survey on Saturday showed that the refinery raised its diesel price by N100 per litre, reversing part of the reduction announced earlier in the week.
The latest adjustment comes amid fluctuations in the cost of petroleum products, with diesel prices remaining a major concern for businesses and consumers who depend on the fuel to power generators, commercial vehicles and industrial equipment.
Diesel is widely used by manufacturers, transport operators and businesses that rely on alternative power sources because of electricity supply challenges. Changes in its price can therefore affect operating expenses and the cost of providing goods and services.
Dangote Refinery’s latest price adjustment also comes as crude oil prices remain elevated in the international market.
Dangote diesel remains cheaper than depot prices
Despite the increase, Dangote Refinery’s diesel remained cheaper than supplies from several depot owners, including Pivot, African Terminal and Integrated, which were selling the product at N1,905 per litre as of Saturday.
At N1,800 per litre, the refinery’s gantry price was N105 below the rate quoted by the depot operators.
The difference means that buyers sourcing diesel directly from the refinery could pay less for the product than those purchasing from the listed depots, although the final price paid by consumers may vary depending on transportation, distribution and other operating costs.
The latest increase, however, could put additional pressure on the retail market, particularly in areas where businesses and households depend heavily on diesel-powered generators.
Retail prices may rise further
Recall that diesel was selling between N1,960 and N1,980 per litre in Abuja and its environs before the latest adjustment.
The increase in the refinery’s gantry price could push retail prices above the prevailing range if marketers pass the additional cost on to consumers.
However, the extent of any further increase would depend on the pricing decisions of marketers and other costs associated with moving the product from the refinery or depots to retail outlets.
The latest adjustment also highlights the rapid changes in diesel pricing, with the refinery reversing part of its earlier reduction within a few days.
Three days before Saturday’s report, Dangote Refinery had reduced its diesel price by N80 per litre, bringing it down from N1,780 to N1,700.
The reduction had offered some relief to bulk buyers, but the subsequent increase has raised the refinery’s price above the level announced earlier in the week.
Crude oil prices remain elevated
The latest diesel price adjustment comes amid high international crude oil prices.
According to the report, Brent crude was trading at $104 per barrel, while West Texas Intermediate (WTI) stood at $91 per barrel as of the time of filing.
Crude oil prices are among the factors that can influence the cost of refined petroleum products, although local prices may also be affected by supply conditions, distribution expenses and market pricing decisions.
The new gantry price means diesel buyers will have to contend with a higher rate at the refinery, while the impact on retail prices will depend on how marketers respond to the latest change.
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