Nigeria’s downstream petroleum market is facing renewed pressure following a fresh price adjustment by Dangote Refinery, which has increased the gantry price of Automotive Gas Oil (diesel) to ₦1,750 per litre.
The latest hike represents a sharp ₦250 jump from the previous ₦1,500 per litre rate, itself a recent increase from ₦1,430 recorded just about a week earlier. The rapid succession of price adjustments underscores the volatility currently shaping diesel pricing in the country.
According to industry sources, the revised pricing template took immediate effect, with the refinery moving directly to the new rate amid intensifying cost pressures. Market analysts say the development reflects broader challenges confronting operators in Nigeria’s deregulated diesel segment.
Key drivers behind the increase include rising global crude oil prices, persistent foreign exchange constraints, and elevated operational costs tied to feedstock procurement and logistics. As a deregulated product, diesel prices remain closely linked to international oil market fluctuations, leaving them vulnerable to sudden changes.
The impact is expected to be felt widely across the economy. Businesses dependent on diesel for power generation, transportation, and manufacturing are likely to face higher operating expenses, which could cascade into increased prices for goods and services.
For households, particularly in areas with limited access to stable electricity, the adjustment may further strain already tight budgets, as reliance on diesel-powered generators remains high. Economists warn that the sustained upward trend in energy costs could intensify inflationary pressures and deepen the cost-of-living challenges facing many Nigerians.
The latest move reinforces concerns about energy affordability and highlights the delicate balance between market liberalisation and economic stability in Nigeria’s oil and gas sector.