Dangote Diesel Price Drops to N1,700 Per Litre

Dangote Petroleum Refinery in Lagos, Nigeria — Dangote Petroleum Refinery, the largest single-train refinery in the world · Photo: Punch Nigeria

Dangote Refinery cuts diesel price by N80 to N1,700 per litre, the second reduction in a month, as crude prices and import costs continue to drop.

The Dangote diesel price dropped again on Wednesday. The refinery cut its gantry rate by N80 to N1,700 per litre. That is a 4.5 percent drop and the second cut in a month.

The latest reduction comes as international crude keeps falling. Brent crude hit $98.48 per barrel late Tuesday, down 1.83 percent. WTI stood at $88.23, down 1.34 percent. Both gave the refinery room to pass on savings to Nigerian buyers.

Why the Dangote diesel price dropped

According to a notice to customers, the cut follows lower international crude and softer diesel import costs. MEMAN data shows the spot landing cost of diesel dropped by over N127 in two days. It went from N1,823.68 on September 30 to N1,696.40 on October 2.

The N1,700 per litre gantry price is now only N3.60 above MEMAN's estimated import cost of N1,696.40. That is the narrowest gap yet. Local diesel is becoming more competitive with imported supplies. Other depot operators may need to adjust their prices too.

Dangote Refinery said it would communicate credit values for customers who already loaded at the old rate.

What this fuel price reduction in Nigeria means

The cut is at wholesale level, but it should bring down pump prices across the country. Businesses that run on diesel for power have been struggling with high energy costs. Manufacturing and transport have taken the hardest hits. A sustained fuel price reduction in Nigeria could ease their operating expenses and help lower the cost of goods.

The cut also comes as the Dangote Refinery ramps up production. Nigeria relies less on imported fuel when local refining runs at higher capacity. Lower diesel costs also mean less pressure on the naira for fuel imports. Every naira saved on diesel goes back into the economy through cheaper transport and production costs.

What comes next for the Dangote Refinery

MEMAN's October 2 bulletin showed the seven-day average Brent price falling from $103.89 to $98.48 per barrel. Bonny Light stood at $121.08. Analysts say more cuts could follow if crude keeps sliding. The refinery has now cut diesel prices twice in a month, and the trend may continue.

The Dangote Refinery has been gradually increasing its output since starting operations. Each price cut signals growing production stability and efficiency. If the trend holds, Nigerian businesses and consumers could see sustained relief from one of their biggest operating costs. This fuel price reduction in Nigeria is good news for manufacturers who have been running generators at high diesel costs for years. Transporters may also pass on the savings to passengers, which could help ease the cost of living.