The Dangote Petroleum Refinery has announced a fresh reduction in the depot price of Automotive Gas Oil (AGO), popularly known as diesel, cutting the rate from ₦990 to ₦960 per litre.
Industry sources confirmed that the new price is applicable to bulk purchases of at least two million litres, a move that further intensifies competition in Nigeria’s downstream oil market.
With the adjustment, independent depots that still sell between ₦985 and ₦990 per litre are facing mounting pressure to respond, as the Dangote refinery continues to shape market trends since it began sales of refined products earlier this year.
Analysts say the refinery’s aggressive pricing strategy is aimed at capturing a larger share of the domestic diesel market and reducing Nigeria’s heavy reliance on imports. However, they caution that sustained price cuts could trigger a shake-up among smaller marketers struggling with thin margins.
The development comes at a time when businesses and transporters, who rely heavily on diesel, are grappling with high operating costs. Many observers believe the refinery’s price slash may offer some relief to consumers if the reductions trickle down to retail outlets.
As the battle for dominance in the downstream sector unfolds, all eyes remain on how other major players will react to Dangote’s latest move.
Comments (0)
Please login to comment.