Dangote Petroleum Refinery has reduced the price of automotive gas oil (AGO), commonly known as diesel, by N80 per litre, cutting its gantry price from N1,780 to N1,700, a 4.5 per cent reduction.
The new price takes effect on Wednesday, according to a notice sent to customers.
It is the refinery’s second diesel price cut within a month, following declines in international crude prices and diesel import-parity costs.
Data from the Major Energies Marketers Association of Nigeria showed that estimated spot landing costs fell by N127.28 per litre in two days, from N1,823.68 on September 30 to N1,696.40 on October 2.
MEMAN’s Energy Bulletin also showed that the seven-day average AGO import-parity cost declined from N1,871.34 to N1,823.19 per litre over the same period.
As of 4:55pm on Tuesday, Brent crude was trading at $98.48 per barrel, down 1.83 per cent, while West Texas Intermediate stood at $88.23, down 1.34 per cent, according to OilPrice.com.
At N1,700 per litre, Dangote Refinery’s new diesel gantry price is N3.60 above MEMAN’s estimated spot import-parity cost of N1,696.40 recorded on October 2. The narrow gap highlights the growing competitiveness of locally refined diesel and could pressure depot operators and bulk suppliers to adjust their replacement costs.
MEMAN’s October 2 bulletin put the seven-day average Brent crude price at $103.89 per barrel, WTI at $91.98 and Nigeria’s Bonny Light at $121.08.
Dangote Refinery said it would communicate separately the corresponding credit values for all unloaded gantry volumes affected by the reduction.
