Depot prices for diesel, also known as Automotive Gas Oil (AGO), have spiked by more than 10% within five days across major Lagos terminals. The increase, effective from June 10, is largely attributed to rising international crude oil prices and a rebound in local demand following the long holiday break.
Data gathered from key depot operators shows that diesel now sells for between ₦1,025 and ₦1,050 per litre, compared to a previous average of ₦915–₦925 as of June 5.
Depot-by-Depot Price Hike
At Nipco depot, the diesel price rose from ₦925 to ₦1,025 per litre. Meanwhile, Ibeto, Bono, Integrated, and Ibachem all raised their rates from ₦915 to ₦1,050 per litre. This translates to an average increase of ₦110–₦125 per litre, representing a jump of approximately 11%–13%.
Marketers say the upward adjustment was inevitable given the dual pressure from rising crude benchmarks and increased local lifting demand in the wake of the Sallah public holidays.
Crude Oil Rally Pushes Costs Upstream
As of June 10, 2025, at 2PM, global crude prices were trending upward:
- Brent Crude rose 0.67% to $67.49 per barrel.
- WTI Crude gained 0.64%, trading at $65.71 per barrel.
- Murban Crude climbed 0.72%, reaching $67.53 per barrel.
The upward trend has widened the landing cost for imported diesel, especially for operators sourcing from the international spot market. Analysts note that the strengthening of crude prices often directly impacts refined petroleum products like diesel, particularly in deregulated environments such as Nigeria’s.
Demand Surge After Holiday Break
The post-holiday period has also seen increased diesel demand from logistics operators, manufacturers, and filling stations looking to restock. Diesel remains a critical fuel for generators and haulage fleets, and consumption typically spikes following extended public holidays.
Depot operators confirm that buyers have returned in larger volumes this week, triggering quicker turnover and creating room for upward pricing adjustments.
Market Outlook
Industry players expect diesel prices to remain volatile in the short term, especially as international oil markets respond to macroeconomic developments, including geopolitical tensions and global supply chain constraints.
However, some relief could come from improved domestic refining activity or favourable forex movements, both of which remain uncertain.