Petrol Price Hike Looms as Depot Prices Surge with Rising Global Crude
- Depot owners are on high alert as global crude oil prices have spiked, signalling an imminent hike in fuel prices
- Depot operators, who have earlier responded to Dangote’s price cuts, have stopped selling fuel in some locations
- Data shows that depot prices are edging upwards, as operators remain alert to changing dynamics in the global market
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The downstream petroleum industry is bracing for a new fuel price increase following the uptick in global crude rates.
As of Thursday, August 21, 2025, petrol prices surged across depots, with MATRIX selling PMS at N822 per litre, but closed at N830, while Rainoil prices rose to N840 per litre.
Source: Getty Images
Depot owners respond to changes
On Friday, August 22, 2025, NIPCO began selling petrol at N830, while some depots in Calabar and Port Harcourt stopped selling, signalling a tight market and showing an imminent uptick in depot pricing
Checks show that the global crude oil market showed stronger fundamentals, as Brent Crude rose to $67.75 per barrel, representing a 0.12% increase.
WTI sold at $63.61 per barrel, up 0.14%, while Murban Crude sold at $70.69 per barrel, representing a reduction of 0.06%.
Natural Gas dipped to $2.799 per MMBtu, representing a 0.96% fall.
Petroleumpriceng, the petroleum product tracking platform, reports that the rise in crude prices has put pressure on depot prices.
Depot owners on high alert
According to reports, Nigerian depots are now expected to adjust to the changing realities.
A prior report by Legit.ng disclosed that the depot operators, in response to Dangote Refinery’s ex-depot price reduction, lowered their costs.
Experts say that as crude oil prices rise, refineries adjust rates, and the increase will be passed on to depot operators, who in turn will adjust their off-take costs for marketers.
Pump prices may rise
The effect usually shows in retail pump prices unless subsidised by the government via strategic reserves.
According to analysts, the current pricing remains largely stable but could change if crude continues to climb above $68 per barrel.
Depot owners will either absorb the rising costs temporarily or adjust prices to protect profits.
What to expect
Industry players expect increased volatility in the short term. The interplay between crude price movements, naira-dollar dynamics, and refining costs will determine whether depot operators revise prices upwards in the coming days.
Source: UGC
Unless crude prices stabilise, marketers and end consumers may soon face costlier petroleum products across Nigeria’s downstream chain.
Dangote Refinery cuts diesel price by N30
Legit.ng earlier reported that the mega Dangote Refinery has slashed its diesel prices again, a few days after lowering petrol rates from N850 to N820 per litre.
The current price slash has intensified the price war between the refinery and depot owners and is reshaping Nigeria’s downstream petroleum market.
The giant refinery reduced its depot prices for diesel from N990 per litre to N960 per litre, representing a N30 slash.
Source: Legit.ng
