The Dangote Petroleum Refinery has reduced the price of diesel by N80 per litre, bringing its new gantry price down to N1,700.

The new price took effect on Wednesday, October 7, following a reduction in the cost of diesel imports and weaker international crude oil prices.

The latest adjustment represents a 4.5 per cent reduction from the previous price of N1,780 per litre and is the refinery’s second diesel price cut within a month.

The reduction comes as international oil prices remain volatile. Brent crude dropped to about $98 per barrel on Tuesday before recovering to around $100, while West Texas Intermediate fell below $90 per barrel.

Data from the Major Energies Marketers Association of Nigeria showed that the estimated spot cost of importing diesel into Nigeria dropped from N1,823.68 per litre on September 30 to N1,696.40 per litre on October 2.

The association’s figures indicate that diesel import costs fell by more than N127 per litre within two days.

The Energy Bulletin of the Major Energy Marketers Association of Nigeria also showed that the seven-day average import-parity cost declined from N1,871.34 to N1,823.19 per litre during the same period.

With the new Dangote price now close to the estimated import cost, the reduction could put pressure on diesel prices across the domestic market.

The development is expected to be significant for businesses and other bulk users that depend on diesel to power generators, machinery and other operations.