Diesel depot prices in Nigeria rose sharply on Wednesday at major supply hubs in Lagos and Port Harcourt after international crude benchmarks rebounded strongly, with Brent crude gaining 6.48% to $89.54 per barrel. The increase, triggered by fresh geopolitical tensions in the Middle East, has prompted marketers to adjust ex-depot rates, with industry observers warning that further hikes are likely if the crude rally holds.
Depot Prices Rise in Lagos and Port Harcourt
Checks by Petroleumprice.ng at 2:50 p.m. WAT showed Brent crude trading at $89.54 per barrel, while U.S. West Texas Intermediate (WTI) climbed 6.32% to $84.27 per barrel. The price movement quickly fed into local loading rates. In Lagos, seven depots—Ibeto, Integrated, Ibachem, Gulf Treasure, Duport, African Terminal, and T.Time—sold Automotive Gas Oil (AGO) at ₦1,650 per litre. Sigmund Depot in Port Harcourt priced diesel slightly higher at ₦1,670 per litre.
The adjustments are notable because depot operators had held diesel prices steady just days earlier, even as global crude benchmarks fell sharply. The renewed rally has triggered a swift reassessment of replacement costs among marketers, signaling the start of a new pricing cycle.
Geopolitical Tensions Fuel Crude Rally
The recovery in crude prices was driven by a fresh escalation in Middle East tensions. The United States and Saudi Arabia carried out strikes against Iran-backed groups in Iraq, holding them responsible for drone attacks on Saudi energy infrastructure. U.S. forces also intercepted Iranian ballistic missiles reportedly aimed at American installations in the region, raising fears that the conflict could spread and disrupt crude exports from the Gulf.
Diplomatic efforts to calm the situation suffered a setback after an Iranian official told Reuters that Tehran had turned down Oman's proposal for joint regional oversight of the Strait of Hormuz, one of the world's most critical oil shipping routes. The rejection dampened hopes of a security arrangement that could have eased supply concerns. Traders responded by adding a risk premium back into oil prices following several sessions of losses, as the prospect of supply disruptions from the region came back into focus.
Impact on Nigerian Consumers and Businesses
For consumers and businesses in Nigeria that depend heavily on diesel to power generators, the depot-level increases signal higher costs at the pump. Industry observers say further upward adjustments are likely across petroleum products if global crude prices remain elevated in the coming trading sessions.
Petrol prices have also risen recently. Legit.ng earlier reported that marketers in Lagos, Warri, and Calabar raised their ex-depot Premium Motor Spirit (PMS) rates by between ₦2 and ₦87 per litre. Data from Petroleumprice.ng showed that in Lagos, A.A. Rano increased its ex-depot rate from ₦1,275 to ₦1,279 per litre, a ₦4 rise. African Terminal, Ascon, Gulf Treasure, Integrated, and T.Time all moved their prices up by ₦2, bringing each to ₦1,275 per litre. Aiteo, Heyden, and Nipco kept their prices unchanged at ₦1,275 per litre.
With crude prices hovering near $90 per barrel and no immediate sign of de-escalation in the Middle East, Nigerian fuel buyers should brace for continued price adjustments in the downstream sector.
