Depot price drops to ₦1,600 per litre amid fresh fuel imports, raising hopes of lower costs for businesses and transporters

Dangote Petroleum Refinery has cut the gantry price of Automotive Gas Oil (diesel) by ₦200 per litre, in a move driven by rising supply and intensifying competition in Nigeria’s downstream petroleum sector.

The latest adjustment brings the depot price down from ₦1,800 to ₦1,600 per litre, offering potential relief to marketers, transport operators, manufacturers and other businesses heavily reliant on diesel for daily operations.

Industry sources say the new pricing took effect on May 26, shortly after the arrival of fresh imported fuel cargoes into the country. The influx of supply has heightened competition, particularly as more marketers secure licences to import petroleum products.

Operators in the sector attribute the price reduction to mounting market pressure, with increased product availability forcing suppliers to review prices downward to remain competitive.

The development is expected to ease operational costs across key sectors such as logistics, manufacturing and transportation, where diesel accounts for a significant share of expenses.

However, analysts caution that the full benefit to end users will depend on the sustainability of the price cut and whether marketers pass on the reduction across the distribution chain.