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Dangote Raises Diesel Gantry Price by ₦100 to ₦1,800 a Litre, Three Days After a ₦80 Cut
Diesel buyers who thought relief had arrived on Wednesday got a reversal on Saturday. The Dangote Petroleum Refinery has raised its automotive gas oil gantry price by ₦100 a litre, from ₦1,700 to ₦1,800, according to a notice sent to customers and market surveys published on October 10.
The change took effect that day and amounts to a 5.88 percent increase. It came only three days after the refinery lowered its diesel price by ₦80, from ₦1,780 to ₦1,700. Put together, the two moves leave the gantry price ₦20 higher than it was before the cut, so the discount has been fully erased and then some. Gantry price here means the rate at which diesel is loaded at the refinery’s own terminal, before distributors add transport, storage and margins.
The refinery did not publish a reason in the reports reviewed, so the cause of the swing is not confirmed. Industry observers typically link such adjustments to movements in international diesel prices and the exchange rate, but no official explanation accompanied this one. What the numbers do show is how volatile the product has been. Diesel last sat at ₦1,800 a litre in late April, when Brent crude jumped toward $125 a barrel and the refinery briefly suspended diesel loading for marketers, according to coverage at the time.
How does ₦1,800 compare with what else is on offer? Despite the increase, Dangote’s gantry price remains lower than some depot rates. Market data cited on Saturday showed Pivot, African Terminal and Integrated selling diesel at ₦1,905 a litre, which puts the refinery’s price ₦105 below them. Other depots quoted ₦1,800, including Chipet, Ibachem and Wosbab, while Petroleumprice.ng listed Dangote’s own depot price at ₦1,720 and some depots as high as ₦2,000. So buyers who can load directly at the refinery still pay less than most intermediaries, though the gap has narrowed after the hike.
The effect on pump prices depends on what marketers do next. In Abuja and nearby areas, retail diesel was selling between ₦1,960 and ₦1,980 a litre on Saturday, and reports say the higher gantry cost could push those prices above that range if retailers pass it on. Because the increase is only days old, no retail adjustments have been confirmed.
Diesel matters more to the wider economy than its share of vehicle fuel suggests. It runs trucks and buses that carry food and goods, powers generators in factories, shops and offices, and drives farm equipment. When diesel gets more expensive, transport and production costs rise, and those costs tend to appear later in food and consumer prices. That is why even a ₦100 change draws attention from manufacturers, hauliers and market traders.
The timing also sits awkwardly next to recent government efforts to ease fuel costs. The federal government announced a 30-day petrol discount at NNPC stations last week and is negotiating a ₦1,350 ceiling on petrol ex-gantry prices, but those measures apply to petrol. Diesel is not part of that package, and diesel prices have moved independently, which leaves businesses that rely on it without a similar cushion.
For buyers, a few practical points follow. Compare quotes across depots, since the spread between ₦1,720 and ₦2,000 is large for bulk purchases. Check the price at the moment of loading, because three changes in a single week show how quickly rates can move. And if you buy at retail, expect local prices to differ by city, since transport costs and depot access vary. The next signal to watch is whether the refinery changes the price again in the coming days and whether depot operators follow it.
