Dangote Refinery has intensified the ongoing price competition in Nigeria's downstream petroleum sector after reducing its gantry prices for Automotive Gas Oil (AGO), popularly known as diesel, and Aviation Turbine Kerosene (ATK), otherwise known as jet fuel.
Market data obtained by Petroleumprice.ng showed that Dangote Refinery has cut its diesel gantry price by ₦100, from ₦1,700 per litre to ₦1,600 per litre, representing a 5.9 per cent reduction. Jet fuel prices were also lowered by ₦100, from ₦1,550 per litre to ₦1,450 per litre, translating to a 6.5 per cent decline.
Private depot operators had already started lowering prices in anticipation of cheaper crude oil and improved global supply conditions following easing tensions between the United States and Iran and growing optimism over the reopening of the Strait of Hormuz. As of the time of writing 07:50 pm (WAT), Brent crude fell to $78.98 per barrel, down 5.04 per cent, while WTI crude was trading at $76.05 per barrel, down 5.82 per cent, reinforcing expectations of further reductions in domestic fuel prices in the coming days.
Checks by Petroleumprice.ng gathered that Rainoil had adjusted its Aviation Turbine Kerosene price from ₦1,553 per litre to ₦1,550 per litre on June 15. Similarly, diesel closing prices across Lagos depots on June 16 at African Terminal, Sahara, Ibeto and Duport sold at ₦1,660 per litre.
With Dangote Refinery now offering diesel at ₦1,600 per litre, the refinery is undercutting prevailing depot prices by between ₦60 per litre, a development expected to trigger another round of price reductions across private depots in the coming days.
The latest adjustment is expected to provide significant relief to Nigeria's aviation industry, where jet fuel remains one of the biggest operating costs for airlines. Lower ATK prices could ease financial pressure on operators, improve profitability and potentially create room for lower airfares if the trend is sustained.
Industry stakeholders say the reductions further demonstrate how movements in international crude oil prices are increasingly being transmitted into Nigeria's domestic fuel market, with Dangote Refinery emerging as a major price setter in the country's downstream sector.
Should global oil prices remain subdued, analysts believe motorists, transport operators, airlines and businesses could see additional price relief in the weeks ahead.