Depot Owners Increase Diesel Price by Over 10% amid Speculations of Petrol Hikes

• Diesel prices have risen in depots across Lagos by over 10% due to increased local demand and rising international crude oil prices
• Market data shows that diesel now sells between N1,025 and N1,050 per litre from N925 as of June 5, 2025
• The new rate shows an average increase of N110 to N125 per litre, indicating a jump of about 11% to 13%

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Depot prices for Automotive Gas Oil (AGO), also known as diesel, have risen by over 10% across major Lagos terminals in the last five days.

The spike, effective June 10, 2025, is due to an increase in international crude oil prices and a reported rebound in local demand after the long holiday.

Diesel prices jump by over N100 per litre

According to market data from major depot owners, diesel now sells for between N1,025 and N1,050 per litre, relative to N915 to N925 as of June 5, 2025.

Petroleumpriceng reported that diesel prices rose at NIPCO from N925 to N1,025 per litre, while Ibeto, Bono, Integrated, and Ibachem increased their prices from N915 to N1,050 per litre.

The new rate translates to an average increase of N110 to N125 per litre, indicating a jump of about 11% to 13%.

Dealers say the upward increase was unavoidable due to pressure from rising crude oil and increased local demands.

Crude oil prices surge in international markets

Data from the international crude oil market shows that as of Tuesday, June 10, 2025, Brent crude rose by 0.67% to $67.49 per barrel, while West Texas Intermediate (WTI) rose by 0.64% to $65.71 per barrel, and Murban crude rose by 0.72%, hitting $6753 per dollar.

The increase has widened the landing cost for imported diesel, especially for marketers sourcing from the international market.

Experts say that the rise in crude prices often directly affects refined petroleum products such as diesel.

Higher demand puts pressure on diesel prices

Reports say that after the holiday, diesel prices spiked due to increased demand and logistics operators, manufacturers, and filling stations seeking to restock.

Per the report, diesel is an essential fuel for generators and haulage fleets, and consumption usually rises following long holidays.

Depot owners confirmed buyers have returned in larger volumes, causing quicker turnover and creating demand.

Analysts expect diesel prices to remain unstable in the short term, especially as international oil markets react to developments, including geopolitical crises and global supply chain issues.

Dealers hike petrol prices at the depots

A previous report by Legit.ng disclosed that the Nigerian petroleum market may see a slight increase in depot prices soon due to a hike in international oil prices and a domestic distribution shutdown due to the long holiday.

Reports say that from Friday, June 6, to Monday, June 9, 2025, key petrol depots nationwide halted sales to observe the national public holiday, slowing down supply to retail stations.

The depot closures have caused distribution challenges, as industry experts expect pump prices to change in line with the impact in the coming days, especially in urban areas.

According to a report by Petroleum Price, depots which have shut down include the Mainland depot in Calabar, Ever Oil and Sigmund in Port Harcourt, First Fortune and Rainoil in Warri, and Wosbab, Aipec, and Techno Oil in Lagos.

Marketers propose new petrol prices

Legit.ng earlier reported that the Independent Petroleum Marketers Association of Nigeria (IPMAN) proposed a new PMS price for the Dangote Refinery.

The association said the mega refinery should sell petrol below the current N825 per litre ex-depot price.

IPMAN’s publicity secretary, Chinedu Ukadike, disclosed this recently, stating that the refinery has all the enabling reasons to sell petrol below the current gantry price.

Proofreading by Kola Muhammed, copy editor at Legit.ng.

Source: Legit.ng