Dangote Petroleum Refinery has raised its diesel distribution price. The company cited recent fluctuations in global crude feedstock costs and international exchange rates. The adjustment takes effect immediately. It is the latest in a series of price increases. Diesel is the fuel of industry. Higher prices raise production costs. They also raise transport fares.
Diesel prices have risen sharply since the petrol subsidy was removed in May 2023. In 2023, diesel sold for about ₦800 per litre. It now sells above ₦1,500 in many areas. Dangote Refinery began producing diesel in 2024. It was expected to lower prices. Instead, it has followed market trends. The refinery prices based on crude costs and exchange rates. When crude rises, diesel rises. When the naira weakens, diesel rises.
The new price adjustment follows similar increases in petrol. Dangote raised petrol prices four times since August. Its gantry price for petrol is now ₦1,350 per litre. Diesel is now higher. The company has not disclosed the exact increase. Marketers say it is significant. They warn that transport and manufacturing costs will rise. Consumers will pay more for goods and services.
Winners: Dangote Refinery, which earns margins. Fuel marketers, who pass costs. The government, which avoids subsidy. Losers: Manufacturers, who face higher costs. Transport operators, who face higher fares. Consumers, who pay more. Small businesses, which absorb costs.
Bottom Line: Dangote raised diesel prices again. The company blames global crude and exchange rates. Businesses will pay more. Consumers will pay more. The refinery is a business. It prices to market. The relief it promised has not materialised.