Depots Increase Diesel Prices as Crude Nears $90, Marketers Adjust Pumps
- Diesel depot prices climbed at several major supply hubs in Lagos and Port Harcourt on Wednesday as global oil prices rebounded sharply
- Brent crude surged 6.48 per cent to $89.54 per barrel, reversing losses recorded earlier in the week amid fresh geopolitical tensions
- Marketers have already begun adjusting ex-depot rates, with industry observers warning of further increases if the crude rally holds
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigerian diesel marketers have started raising depot prices after international crude oil benchmarks surged sharply on Wednesday, piling fresh cost pressure onto the downstream fuel market.
Checks by Petroleumprice.ng at 2:50 p.m. WAT showed Brent crude trading at $89.54 per barrel, a gain of 6.48 per cent on the day, while the U.S. West Texas Intermediate (WTI) benchmark climbed 6.32 per cent to $84.27 per barrel.
Source: Getty Images
Depot rates climb in Lagos and Port Harcourt
The price movement in the international market quickly fed into local loading rates.
In Lagos, seven depots, Ibeto, Integrated, Ibachem, Gulf Treasure, Duport, African Terminal, and T.Time, all sold Automotive Gas Oil (AGO) at ₦1,650 per litre. Sigmund Depot in Port Harcourt went slightly higher, pricing diesel at ₦1,670 per litre.
The adjustments are notable because depot operators had held diesel prices steady only days earlier, even as global crude benchmarks fell sharply, suggesting that the renewed rally has triggered a swift reassessment of replacement costs among marketers.
Geopolitical tensions behind the oil price rebound
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.
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Diplomatic efforts to calm the situation ran into 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.
Source: Getty Images
What it means for Nigerian fuel buyers
For consumers and businesses in Nigeria that depend heavily on diesel to power generators, the depot-level increases signal the start of a new pricing cycle 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 price rises again, marketers release new rates
Legit.ng earlier reported that petrol prices at major depots across Nigeria have moved upward, with marketers in Lagos, Warri and Calabar raising their ex-depot Premium Motor Spirit (PMS) rates by between N2 and N87 per litre, adding fresh pressure to the downstream oil sector.
The latest depot loading data shows that most marketers reviewed their prices upward, though a handful held existing rates and at least one reduced its price.
Data from Petroleumprice.ng showed that in Lagos, A.A. Rano raised its ex-depot rate from N1,275 to N1,279 per litre, a N4 increase. African Terminal, Ascon, Gulf Treasure, Integrated and T.Time all moved their prices up by N2, bringing each to N1,275 per litre. Aiteo, Heyden and Nipco kept their prices unchanged at N1,275 per litre.
Source: Legit.ng
