The Dangote Petroleum Refinery has announced a reduction in the gantry price of Automotive Gas Oil (AGO), popularly known as diesel, by ₦200 per litre.
The latest adjustment lowers the depot price of diesel from ₦1,800 to ₦1,600 per litre, marking another major shift in Nigeria’s downstream petroleum market.
The development comes amid the arrival of fresh imported fuel cargoes into the country, a situation that has increased supply and intensified competition among players in the oil and gas sector.
Industry sources disclosed that the new price adjustment took effect on May 26, 2026, as marketers and depot owners continue to respond to changing market realities.
Operators in the downstream sector attributed the price reduction to growing pressure from imported petroleum products recently discharged at various ports across the country.
A representative of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) stated that the renewed inflow of imported fuel has significantly altered the market structure and pricing dynamics.
According to the official, the commencement of product discharge by import vessels has expanded supply channels and created a more competitive environment for local refiners and marketers.
The development follows recent disagreements between petroleum marketers and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) over the issuance of fuel import licences.
The regulatory body had approved some marketers to import petroleum products, a move that has further increased product availability in the domestic market.
Industry analysts believe the reduction in diesel prices could provide relief for businesses and consumers if the trend remains stable in the coming weeks.
Diesel remains a critical energy source for transportation, manufacturing, logistics, telecommunications, and small-scale businesses across Nigeria, especially amid persistent electricity supply challenges.
Stakeholders say the price cut may help reduce operational and transportation costs for businesses that rely heavily on diesel-powered equipment and generators.
Economic observers also noted that the development could contribute to easing inflationary pressure on goods and services if sustained over time.
The Dangote Refinery, regarded as Africa’s largest single-train refinery, has continued to play a significant role in shaping fuel pricing trends since commencing operations.
