Dangote Refinery has reportedly increased the price of Automotive Gas Oil, AGO, commonly known as diesel, at its gantry nationwide as international crude oil prices climbed above $94 per barrel.
A market survey conducted on Thursday showed that the refinery increased its diesel price to ₦1,670 per litre from ₦1,570, representing a ₦100 increase per litre.
The latest adjustment amounts to a 6.4 per cent increase in the gantry price of diesel from the 700,000-barrel-per-day refinery.
Dangote Refinery had not officially confirmed the reported price increase as of the time of the report.
The development could push diesel prices higher at retail outlets, where the product was selling for between ₦1,700 and ₦1,790 per litre in Abuja.
The latest increase comes about two weeks after Dangote Refinery reduced its gantry prices for diesel and Premium Motor Spirit, PMS.
On August 6, the refinery reduced its diesel price to ₦1,570 per litre, while its PMS price was reduced to ₦1,165 per litre.
Despite the increase in the diesel price, the refinery’s reported PMS gantry price remained unchanged at ₦1,165 per litreas of Thursday.
The latest development comes amid a sharp increase in international crude oil prices.
As of 2pm on Thursday, Brent crude was trading at $94.13 per barrel, representing a 2 per cent increase, while West Texas Intermediate, WTI, crude rose by 3 per cent to $87.13 per barrel.
Higher crude oil prices could continue to influence the cost of refined petroleum products in the domestic market, depending on crude supply, refining costs, exchange rates and prevailing market conditions.
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