The Dangote diesel price has dropped again. The Dangote Petroleum Refinery cut its gantry price for diesel by N80 to N1,700 a liter on Wednesday, citing weaker international crude prices and lower import costs.
The new rate, down from N1,780, is a reduction of about 4.5%. It is the second cut in a month. On Oct. 1, the refinery lowered its price by N70 from N1,850, which means diesel from Dangote is now N150 cheaper than it was a week ago.
The refinery told customers that credit values will be communicated separately on all gantry volumes already unloaded that are affected by the reduction.
What drove the Dangote diesel price cut
Import parity is the cost of bringing diesel into Nigeria from abroad, and it sets a ceiling on what local sellers can charge. The Major Energy Marketers Association of Nigeria estimates it at N1,696.40 a liter. Dangote’s new price now sits almost exactly at that level, which narrows the gap between refinery pricing and import economics.
Global crude has also softened. Brent slipped toward $100 a barrel this week after the G7 agreed to release 100 million barrels from emergency reserves, and exports from the Gulf have partly recovered. That has eased some of the pressure created by the standoff over the Strait of Hormuz.
What it means for buyers
Lower wholesale diesel should help transporters, manufacturers and other firms that depend on it for trucks and backup generators. Diesel costs flow quickly into the prices of food, goods and transport.
But the gantry price is not what most customers pay. Pump prices depend on marketers, depot rates and local costs, and the change may take days to reach filling stations. At the start of the month, several Lagos depots were still selling diesel between N1,795 and N1,890 a liter, above Dangote’s rate at the time. Diesel is also still pricier than in early August, when the refinery charged N1,570.
Much now depends on whether crude holds near current levels. Oil is still trading around $100, and the Hormuz dispute has not been resolved.
Right now, the pressure is moving in buyers’ favor.
