Nigeria’s fuel market has received a short-term boost after Dangote Petroleum Refinery cut its diesel price, offering relief to transporters and marketers even as global oil tensions raise fresh uncertainty.
The refinery reduced its ex-depot price of Automotive Gas Oil (diesel) to N1,750 per litre, down from N1,950—a N200 drop representing a 10.25% decrease. The move is expected to ease operating costs across key sectors that rely heavily on diesel.
Ex-depot pricing refers to the rate at which refineries sell petroleum products to marketers before distribution to filling stations, making it a critical benchmark for downstream pricing.
Operations at the refinery also resumed fully on Wednesday afternoon, with loading activities restarting around 3:00 PM following an earlier dip in crude oil prices. The recovery has stabilised supply and restored gantry operations.
Improved diesel availability is now anticipated across major distribution centres, including Lagos, Port Harcourt, and Warri, potentially easing supply pressure in the coming days.
In a related adjustment, the refinery also reduced its ex-gantry petrol price to N1,200 per litre on April 8, reversing a N75 increase announced just a day earlier. Industry insiders say the brief hike had minimal impact due to its short duration.
However, the gains may be fragile. Global oil markets remain volatile amid rising geopolitical tensions involving Iran and the United States, with fresh concerns over disruptions in the Strait of Hormuz.
As of Thursday morning, Brent crude was trading at $97.20 per barrel, up 2.59%, while West Texas Intermediate rose to $97.37, gaining 3.14%.
Prices had initially fallen after a ceasefire agreement signalled the reopening of the Strait of Hormuz, a critical global oil transit route. But renewed tensions linked to Israeli strikes in Lebanon and Iran’s warning of retaliation have reignited fears of supply disruption.
Analysts warn that continued instability in global oil supply chains could trigger further price swings, with potential knock-on effects for domestic fuel prices in Nigeria.
