Brent crude climbs past $107 after Iran rejects truce, depot fuel price cuts under threat
By Aboki Forex —
Brent crude jumped back above $107 per barrel on Monday, September 28, reversing the decline that had pushed petrol and diesel depot prices lower across Nigeria in the last week of September.
The rebound followed Iran's rejection of a seven-day ceasefire proposal tied to reopening the Strait of Hormuz, a key route for global crude oil and petroleum product shipments. That decision has raised fresh uncertainty over product flows and put Nigerian depot owners under renewed pressure to raise prices.
Crude prices snap back
Brent crude rose $2.92, or 2.80%, to $107.20 per barrel. West Texas Intermediate gained $2.27, or 2.46%, to reach $94.68.
The climb came after Brent had briefly dipped below $100 on hopes of diplomatic progress between the United States and Iran. Those hopes have now stalled.
What depots did between September 21 and 25
Before the crude rebound, depots in Lagos, Warri, Port Harcourt and Calabar cut prices between Monday, September 21, and Friday, September 25. Data from Petroleumprice.ng showed the average Premium Motor Spirit price across monitored Lagos depots fell by N23.50 per litre over the period.
Sahara recorded the biggest cut, reducing PMS from N1,351 to N1,325 per litre. Pinnacle dropped from N1,350 to N1,325.50, while MRS Tincan moved from N1,352 to N1,332. The average Lagos PMS price settled at N1,327.50, just N2.50 above Dangote Refinery's revised gantry price of N1,325 per litre.
Diesel cuts were steeper. Eterna reduced Automotive Gas Oil by N100 per litre, from N1,950 to N1,850. Rain Oil cut AGO from N1,950 to N1,900. Integrated and Duport each moved from N1,820 to N1,790, while Ibachem fell from N1,815 to N1,790. The average Lagos AGO price declined from roughly N1,860 to N1,824.36 per litre.
Outside Lagos, Warri's Matrix cut PMS from N1,327 to N1,316, and Nepal moved from N1,330 to N1,315. In Port Harcourt, Masters and TSL both cut PMS from N1,330 to N1,303, while Bulk Strategic reduced AGO from N1,928 to N1,890. In Calabar, Alkanes lowered PMS from N1,327 to N1,310 per litre.
By Friday, some depots in Port Harcourt and Warri were selling petrol below Dangote Refinery's N1,325 per litre reference price, while some Lagos depots quoted AGO below the refinery-linked level of N1,850.
Dangote opens gantry to all marketers
The price movements came as Dangote Petroleum Refinery opened the sale of petrol to all licensed marketers, ending its previous consortium marketing arrangement. All qualified marketers can now buy products directly from its loading gantry, widening access to locally refined petrol.
What it means for fuel buyers
The N23.50 and N100 per litre cuts recorded at depots may not hold if crude stays above $107. Depot owners who bought stock at the lower prices have limited room to absorb a sustained rally, and pump prices typically follow gantry adjustments with a lag. For marketers and transporters, the next few days of Brent trading will matter more than the discounts seen in the final week of September.