Diesel depot prices have started climbing across major Nigerian supply hubs as Brent crude surged to nearly $90 per barrel, signalling fresh cost pressures in the downstream market after international oil prices rebounded sharply on Wednesday.
As of 2:50 p.m. WAT, Brent crude traded at $89.54 per barrel, up 6.48 percent, while U.S. benchmark West Texas Intermediate (WTI) rose 6.32 percent to $84.27 per barrel, reversing part of the heavy losses recorded earlier in the week.
The latest rally has already begun filtering into Nigeria's diesel market, with marketers adjusting ex-depot prices upward in response to rising international replacement costs.
Checks by Petroleumprice.ng on Wednesday showed that diesel loading prices increased across several depots. In Lagos, Ibeto, Integrated, Ibachem, Gulf Treasure, Duport, African Terminal and T.Time all sold Automotive Gas Oil (AGO) at ₦1,650 per litre, while Sigmund Depot in Port Harcourt priced diesel at ₦1,670 per litre.
The upward adjustment comes barely days after depot operators maintained stable diesel prices despite a sharp decline in global crude benchmarks, indicating that the renewed rally in the international market is already influencing local pricing decisions.
The rebound in crude prices followed renewed geopolitical tensions involving the United States, Saudi Arabia and Iran. Oil markets reacted after the United States and Saudi Arabia carried out strikes against Iran-backed groups in Iraq, blaming them for recent drone attacks on Saudi energy infrastructure.
The military action came after U.S. forces intercepted Iranian ballistic missiles reportedly targeting American installations in the region, raising concerns that the conflict could widen and threaten crude supplies from the Middle East.
Diplomatic efforts also suffered a setback after an Iranian official told Reuters that Tehran had rejected Oman's proposal for joint regional oversight of the Strait of Hormuz, reducing expectations of an agreement that could ease security concerns along one of the world's most strategic oil shipping routes.
The renewed geopolitical uncertainty has revived concerns over crude supply disruptions, prompting traders to return a risk premium to oil prices after several sessions of declines.
For Nigeria's downstream market, the latest increase suggests diesel prices are once again responding to movements in the international crude market, with marketers already adjusting depot prices upward as replacement costs rise. If the current rally in global oil prices is sustained, industry observers expect additional upward adjustments of petroleum products in the coming trading sessions.