Diesel Prices Jump as Marketers Adjust Depot Rates After Crude Surge

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.

Depot prices react to crude rally

Nigerian diesel marketers have started raising depot prices after international crude benchmarks surged on Wednesday. Checks by Petroleumprice.ng at 2:50 p.m. WAT showed Brent crude trading at $89.54 per barrel. The U.S. West Texas Intermediate (WTI) benchmark climbed 6.32 per cent to $84.27 per barrel.

In Lagos, seven depots sold Automotive Gas Oil (AGO) at ₦1,650 per litre. They are Ibeto, Integrated, Ibachem, Gulf Treasure, Duport, African Terminal, and T.Time. 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. The renewed rally has triggered a swift reassessment of replacement costs among marketers.

Geopolitical tensions drive oil spike

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 ran into a setback. 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 after several sessions of losses.

What this means for Nigerians

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.