Dangote Petroleum Refinery has reduced its Automotive Gas Oil (AGO) gantry price by ₦70 per litre, bringing the price down from ₦1,850 to ₦1,780 per litre, effective 1 October 2026.
The latest adjustment represents a 3.8% reduction and comes as diesel remains a significant operating cost across Nigeria's construction and logistics value chain.
The refinery's new price is below the prices reportedly quoted by several other Lagos depots, where AGO was trading within the range of approximately ₦1,795 to ₦1,890 per litre.
Recent construction-market data also placed diesel at around ₦1,900 per litre in Abuja, highlighting the geographic differences that contractors face when estimating fuel costs for projects.
Diesel Remains a Major Construction Cost
Diesel is used extensively across construction operations, particularly for earthmoving equipment, generators, haulage vehicles, asphalt plants and other heavy machinery.
A ₦70-per-litre reduction can therefore affect operating costs for contractors running diesel-intensive equipment. However, the impact on individual projects will depend on procurement location, transportation costs, supplier margins and the volume of fuel consumed during construction.
For contractors preparing bids or updating project budgets, the refinery's gantry price should also be distinguished from the delivered cost of diesel at the project site.
What Contractors Should Watch
Fuel-intensive operations: Road construction, excavation, quarrying and asphalt works remain particularly exposed to diesel-price movements.
Project location: Differences between Lagos depot prices and delivered prices in other states can materially affect equipment and logistics costs.
BOQ assumptions: Contractors may need to monitor fuel-price movements when preparing or revising project cost estimates.
Material logistics: Lower diesel costs can also influence the cost of transporting cement, steel, aggregates, and other construction materials to project sites.
Nomarc Market Signal
The October price adjustment provides a new reference point for contractors entering the fourth quarter, but the ₦1,780/L refinery price should not automatically be treated as the effective diesel cost for construction projects. Actual project economics will continue to depend on location, logistics, supplier pricing, and consumption levels.
Sources: Dangote Petroleum Refinery pricing announcement as reported by Legit.ng; Buildocrat Nigeria Construction Rate Book.
