Oil marketers in Lagos have raised depot prices for petrol and diesel, with Automotive Gas Oil (AGO) recording the sharper increase, as rising crude prices and continued uncertainty over the reopening of the Strait of Hormuz trigger fresh concerns over the cost of replacing petroleum stocks.
The latest depot checks by Petroleumprice.ng shows that Pivot, Integrated and African Terminal increased their petrol prices from ₦1,168/litre on Monday to ₦1,200/litre at the close of trading on Tuesday, while their diesel prices rose from ₦1,580/litre to ₦1,700/litre over the same period.
The ₦32/litre increase in PMS came alongside a ₦120/litre jump in AGO, signalling a more aggressive repricing of diesel as marketers reassessed the cost of bringing in fresh supplies in an increasingly unsettled international market.
The adjustment came as crude oil prices strengthened, with the unresolved situation around the Strait of Hormuz remaining a major concern for oil traders and market participants. The possibility that the waterway could remain constrained for longer has increased the risk attached to future cargoes and encouraged some depot marketers to reassess their selling positions.
As at the time of writing ,Brent crude stood at $88.56, per barrel, gaining 0.96 per cent, while WTI crude was trading at $83.07 per barrel, up 1.14 per cent. The firmer benchmarks have added to the pressure on marketers whose next purchases could come at a higher cost if the international supply disruption persists.
For depot marketers, the implication is straightforward: marketers are becoming more cautious about selling existing stocks at yesterday’s prices when the cost of replacing those volumes could be substantially higher. This is particularly important for diesel, where the three monitored depots moved their prices by more than seven per cent in one day.
Pivot, Integrated and African Terminal all closed Tuesday at ₦1,700/litre for AGO, compared with ₦1,580/litre on Monday. Their PMS prices also converged at ₦1,200/litre, up from the previous ₦1,168/litre across the three depots.
Dangote Refinery, however, did not follow the upward movement recorded by the depots. Its gantry price remained at ₦1,165/litre for PMS and ₦1,570/litre for AGO, although Dangote marketers were selling higher, at ₦1,181/litre for PMS and ₦1,574/litre for AGO, as the wider depot market adjusted to the changing international environment.
The latest movements underline the sensitivity of Nigeria’s downstream market to developments outside the country. While the current increases are not proof that domestic product costs will continue rising, a prolonged Hormuz disruption and sustained strength in crude prices could keep replacement-cost pressures elevated for marketers.
For now, the key issue for the market is whether the Strait of Hormuz reopens quickly enough to calm international supply concerns. Until there is greater certainty around the waterway and crude flows, Nigerian depot marketers are likely to remain cautious about pricing products against the cost of their next supply rather than only the cost of the stock currently in their tanks.