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Peter Taylor decided to make a tactical change in the 26th minute by bringing off Robbie Stockdale - who had been booked 5 minutes earlier - for winger Jason Price, with Ryan France moving to right-back.
Andy Dawson hit the crossbar with a good free kick, before setting up the equaliser in the 33rd minute. A quickly taken free kick was rolled to Dawson on the left flank, and his cross was headed in by Leon Cort.
City had more of the ball but were failing to break Port Vale down, and the visitors regained the lead midway through the second half. Billy Paynter on the left for the Valiants crossed and Damien Delaney - who had shot just wide at the other end minutes earlier - put a diving header into his own net.
10 minutes from time, substitute Jon Walters came desperately close to restoring parity, but goalkeeper Mark Goodlad made a fantastic save from his 20-yard shot that was heading for the top corner.
The visitors were going all out defence as they tried to run down the clock, and City were unable to create any goalscoring chances until a decision went their way 2 minutes into the 5 of stoppage time. A Dawson corner was handled and a penalty was given, which Fagan managed to fire home.
A 2-2 draw wasn't the result City were looking for, but it's enough to put them top of the table on goal difference following Luton's 3-1 defeat to Barnsley yesterday. Tranmere and Sheffield Wednesday could also only manage draws, so today's action has done no harm at all to City's promotion chances.
City line-up (4-4-2): Myhill; Stockdale (Price 26), Cort, Delaney, Dawson; France, Ashbee, Hessenthaler (Lewis 62), Ellison; Fagan, Barmby (Walters 72).
Un-used subs: Duke, Wilbraham.