Dangote Petroleum Refinery and Petrochemicals has reduced the gantry price of Automotive Gas Oil (AGO), commonly known as diesel, by N200 per litre, in a move that industry stakeholders say reflects intensifying competition in Nigeria’s downstream petroleum sector following the resumption of fuel imports by marketers.
The latest downward adjustment lowers the refinery’s ex-depot diesel price from N1,800 per litre to N1,600 per litre, marking one of the most significant diesel price cuts in recent months amid volatile global oil market conditions and renewed debate over petroleum product imports.
Industry sources familiar with the development said the refinery implemented the revised pricing on May 26, shortly after reports emerged that several vessels carrying imported petroleum products had arrived in the country.
The development signals a potentially new phase of competition within Nigeria’s deregulated downstream market, where operators are increasingly responding to shifts in supply conditions, international crude prices, and regulatory actions.
Confirming the development, Joseph Obele, national public relations officer of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), said the price reduction followed the arrival of imported petroleum cargoes into Nigeria.
According to Obele, market participants interpreted the refinery’s action as part of a broader competitive response to the renewed issuance of import licences by regulators.
“Dangote Refinery recently instituted legal action after the Nigerian Midstream and Downstream Petroleum Regulatory Authority approved import licences for some marketers to bring petroleum products into the country,” Obele said.
“Over the weekend, some of the vessels carrying imported products reportedly arrived, and shortly after, the refinery reduced the gantry price of diesel from N1,800 to N1,600 per litre,” he continued.
The price adjustment comes amid a continuing dispute within the petroleum industry over the issuance and renewal of import licences by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to independent marketers and the Nigerian National Petroleum Company Limited (NNPCL).
The disagreement has intensified in recent months as operators debate the role of imports in a market where domestic refining capacity has expanded significantly following the commencement of operations at the Dangote refinery.
Industry analysts say the latest diesel price reduction could provide relief for businesses and manufacturers struggling with high operating costs, particularly companies heavily dependent on diesel-powered logistics, manufacturing equipment, and electricity generation.
Diesel remains a critical fuel for Nigeria’s industrial and commercial sectors due to persistent electricity supply challenges and the widespread reliance on self-generated power.
The reduction also coincides with renewed volatility in global crude oil markets following geopolitical tensions in the Middle East.
Brent crude, the international oil benchmark, reportedly declined to $95.05 per barrel on Wednesday from $98.04 recorded a day earlier as investors reassessed risks surrounding energy supply disruptions and diplomatic negotiations involving the United States and Iran.
Global oil prices have experienced fluctuations since hostilities involving the United States, Israel, and Iran escalated earlier in the year, disrupting critical energy shipping routes around the Strait of Hormuz.
The strategic maritime corridor, located between Iran and Oman, handles a substantial portion of global crude oil exports and liquefied natural gas shipments.
The temporary closure of the Strait during the conflict triggered fears of global supply shortages, contributing to spikes in international oil prices and renewed inflation concerns across energy-importing economies.
Although a ceasefire agreement initially raised hopes for market stabilisation after Iran reopened the Strait of Hormuz to commercial shipping, uncertainty around regional security conditions has continued to fuel volatility within global energy markets.
Further complicating the outlook, the United Arab Emirates recently announced its withdrawal from the Organisation of the Petroleum Exporting Countries and the broader OPEC+ alliance after nearly six decades of membership.
The decision has generated fresh speculation about the future cohesion of global oil supply coordination efforts and the potential impact on long-term crude production strategies among major exporters.
Despite the geopolitical uncertainty, market participants continue to closely monitor diplomatic engagement between Washington and Tehran, which analysts say remains central to the direction of global energy prices.
