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Dangote Refinery Slashes Diesel, Jet Fuel Prices

The Dangote Petroleum Refinery has lowered its gantry prices for Automotive Gas Oil (diesel) and Aviation Turbine Kerosene (jet fuel).

According to data from Petroleumprice.ng, the Dangote refinery reduced the diesel gantry price by N100, from N1,700 per litre to N1,600 per litre, representing a reduction of 5.9 per cent. Jet fuel prices were also lowered by N100, from N1,550 per litre to N1,450 per litre.

This comes hours after the refinery announced a N75 drop in the petrol gantry price from N1,250 to N1,175 per litre.

The reduction was linked to the drop in crude prices following the de-escalation of the Middle East crisis.

It was gathered that private depot operators have started lowering prices to compete with the Dangote refinery.

According to Petroleumprice.ng, Rainoil has adjusted the jet fuel price from N1,553 per litre to N1,550 per litre on Monday. Similarly, diesel’s closing price across Lagos depots on Tuesday at African Terminal, Sahara, Ibeto and Duport was an average of N1,660 per litre.

Oil prices sustained their downward trend on Tuesday, falling below $80 per barrel for the first time in about three months.

From $83 per barrel on Monday, Brent crude, the global benchmark, fell to $78 on Tuesday, according to data from Oilprice.com.

The price of Brent is now well below the peak it hit during the war, which was about $120 a barrel. Before 28 February, when the war started, the Brent price was below $70. During the crisis, it traded at about $120 per barrel, leading to a sharp increase in fuel prices globally.

It is expected that this trend will now reverse following the latest developments between the US and Iran.

Speaking during an interview, Chinedu Ukadike of IPMAN noted that fuel prices may keep falling should the US-Iran tensions be fully resolved.

According to Ukadike, marketers have not yet reduced pump prices because many still hold old stock, and he urged Nigerians to exercise patience. He said consumers often expect immediate price adjustments, noting that such moves would result in losses for marketers still holding expensive inventory.

“This announcement is enabling people who have old stocks to clear out their stocks, not only clearing out their stocks but also enabling them to prepare to take the fresh stocks,” he said.

Ukadike added that loading activities usually slow down whenever the Dangote refinery announces new prices, allowing marketers time to clear old stock.

“Once the Dangote refinery announces a new price, there is a serious pause in loading. And it will enable people who just bought new products to see how they can clear the old stocks within the window of a day or two. Then when the new stocks start coming into the market, the process of supply and price will set in. Definitely, by tomorrow and Friday, people will start adjusting to the new price,” he said.

However, the spokesman of the Petroleum Products Retail Outlet Owners Association of Nigeria, Joseph Obele, expressed concern that imported petroleum products appear cheaper than locally refined fuel, calling on the Nigerian Midstream and Downstream Petroleum Regulatory Authority to issue more licences for fuel imports.

Like Obele, Nigerians on social media have complained that the reductions do not reflect the recent decline in crude oil prices.