Nigeria’s diesel market is facing fresh uncertainty after the Dangote Petroleum Refinery suspended the loading of Automotive Gas Oil (AGO) at its gantry, prompting several petroleum depots to raise their prices to as much as ₦1,900 per litre.
The development comes amid a sharp increase in international crude oil prices, with Brent crude trading at around $116 per barrel, putting additional pressure on fuel costs and raising concerns about the possibility of further increases in the domestic market.
According to industry reports, diesel loading at the refinery stopped at approximately 3:00 a.m. on Saturday, October 24. However, the suspension reportedly affected only diesel, as petrol loading continued.
A truck driver familiar with the refinery’s operations disclosed that the facility had completed the loading of available Premium Motor Spirit (PMS), commonly known as petrol, before diesel operations were halted.
The refinery has yet to issue an official statement explaining the decision or announce any adjustment to its diesel price. Consequently, speculation is mounting among petroleum marketers that the suspension could precede a review of the refinery’s selling price.
Meanwhile, depot operators in Lagos and Warri have already adjusted their diesel prices upward.
In Warri, Matrix depot quoted diesel at ₦1,900 per litre, while Rain Oil offered the product at ₦1,830. In Lagos, Wosbab and Prudent depots also quoted ₦1,900 per litre, while Pivot, Integrated and Duport listed their prices at ₦1,850 per litre.
The price adjustments, some of which reportedly began on Friday, reflect marketers’ concerns about the rising cost of replenishing their inventories if international crude prices remain elevated.
Any additional increase in diesel prices could have significant implications for Nigerian businesses, particularly manufacturers, transport operators and small enterprises that depend on diesel-powered generators and equipment to sustain their operations.
Higher diesel costs could increase production and distribution expenses, potentially pushing up the prices of goods and services and placing additional pressure on households already dealing with high living costs.
For now, petroleum marketers are awaiting clarification from the Dangote refinery on when diesel loading will resume and whether a new gantry price will be introduced.
Until an official announcement is made, the direction of diesel prices will largely depend on the refinery’s next decision, international crude oil movements and the supply conditions in the domestic petroleum market.
