Dangote Petroleum Refinery has reduced the ex-depot price of Automotive Gas Oil, popularly known as diesel, by N200 per litre following the arrival of fresh imported petroleum products into the country.
The new adjustment brings the gantry price down from N1,800 per litre to N1,600 per litre, a development that has already sparked reactions across Nigeria’s downstream oil sector.
Industry operators said the latest price review took effect on Monday, May 26, amid increasing competition between local refiners and fuel importers.
The reduction is coming at a time when several petroleum marketers have reportedly resumed the importation of refined petroleum products after securing approvals from the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA.
Stakeholders in the sector believe the refinery’s decision may not be unconnected with the renewed inflow of imported diesel cargoes into the Nigerian market.
Speaking on the development, the National Public Relations Officer of the Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, Joseph Obele, said the arrival of imported products may have influenced the refinery’s latest pricing move.
According to him, marketers recently received imported petroleum shipments, forcing a fresh round of market competition within the sector.
“Dangote Refinery recently instituted legal action after the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, approved import licences for some marketers to bring petroleum products into the country,” Obele said.
“Over the weekend, some of the vessels carrying imported products reportedly arrived, and shortly after, the refinery reduced the gantry price of diesel from N1,800 to N1,600 per litre.”
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