Lagos depot owners and petroleum marketers have raised the wholesale price of Automotive Gas Oil (AGO), popularly known as diesel, by 2.8 per cent, increasing the prevailing market price from ₦1,410 per litre on Tuesday to ₦1,450 per litre on Wednesday, within hours of the sharp rebound in global crude oil prices triggered by renewed geopolitical tensions in the Middle East.
As of 2:00 p.m. WAT on Wednesday, Brent crude traded at $78.36 per barrel, up 5.66 per cent, while West Texas Intermediate (WTI) climbed to $74.30 per barrel, representing a 5.48 per cent gain.
Checks by Petroleumprice.ng showed that Duport, African Terminal, Ibachem and T.Time sold diesel at ₦1,410 per litre on Tuesday, while Sahara offered the product at ₦1,405 per litre. Menj and Wosbab sold at ₦1,420 per litre.
By Wednesday, Aiteo, Gulf, Menj, Wosbab, T.Time, African Terminal, Ibachem and Duport had revised their prices to ₦1,450 per litre, lifting the average Lagos depot price by ₦40 per litre in less than 24 hours.
The upward price movement also spread beyond Lagos. At the A.Y.M. Shafa depot in Warri, diesel rose from ₦1,435 per litre on Tuesday to ₦1,500 per litre on Wednesday, while Prudent Energy increased its price from ₦1,480 per litre to ₦1,550 per litre over the same period.
The increases followed a fresh escalation in tensions between the United States and Iran after U.S. President Donald Trump declared the ceasefire effectively over, threatened further military action against Iran and signalled that Washington could reinstate a naval blockade on Iranian ports. The developments renewed concerns over crude supplies through the Strait of Hormuz, sending international oil prices sharply higher.
The latest market movement underscores how quickly depot owners and marketers respond to rising crude oil prices. Within hours of the rally in international benchmarks, diesel prices were revised upward across several depots and marketing locations.
By contrast, downward movements in global crude prices have historically taken much longer to filter into the domestic diesel market. During previous declines in international oil prices, marketers and depot owners adjusted prices gradually and often after prolonged delays, despite sustained weakness in global benchmarks.
Industry sources told Petroleumprice.ng that the latest round of adjustments may not be the last, with expectations that more depots could review diesel prices upward on Thursday if international crude prices remain elevated.
The contrasting pace of price adjustments has continued to attract attention across the downstream sector, where upward movements are frequently reflected almost immediately, while reductions linked to falling crude prices tend to emerge more slowly.