Diesel prices in Lagos are rising rapidly as most depots in the state struggle with depleted supply, creating one of the most severe diesel shortages recorded this year. Market checks by Petroleumprice.ng show that fewer than 10 depots currently have diesel available in Lagos, compared with over 30 depots that held stock just a month ago.
Of the few depots still selling, almost half are running on very low volumes, limiting supply options for buyers across the state. Dangote Refinery remains one of the few with active sales, but its prices have climbed sharply. Marketers selling Dangote product have now hiked their prices to ₦925/litre despite the refinery’s gantry price standing at ₦910. The increase is driven by depot-market pressure, as most depots are running on low stock with limited supply—pushing other Lagos depots such as T.Time and Wosbab to sell as high as ₦950/litre. This tight supply environment is influencing marketer behaviour even for those who purchased at the previous ₦910 gantry price revised on December 4.
Industry sources attribute the shortage to a sharp decline in diesel importation. Importers are pulling back due to high landing costs and currency pressures, with many not planning new import cycles for the remainder of the year. This slowdown has pushed demand higher than available supply, putting pressure on industrial activity in Lagos, Nigeria’s economic centre.
Import Decline, Refinery Delays Intensify Supply Glitch
The supply deficit has broader consequences for manufacturers, logistics operators, and businesses that rely on diesel for power generation and production. With fewer depots carrying product, prices on monitored platforms show consistent upward movement.
Although the Dangote Refinery is currently the only large-scale domestic supplier, the expected relief has not yet stabilised the market. Some buyers remain uncertain about the refinery’s product specifications, while others face delays in processing lifting tickets, slowing down access to the product. These challenges have extended the supply glitch across both private depots and the refinery, leaving the Lagos market exposed to further volatility.
Prices Expected to Keep Rising in the Coming Days
Market analysts warn that diesel prices are likely to continue rising through the first half of the season. The imbalance between strong demand and shrinking supply has already triggered notable price hikes, and traders expect additional increases if current conditions persist.
“As I speak to you now, prices will keep rising as the day goes by,” a depot source familiar with current stock levels said.
With Lagos serving as the country’s commercial nerve centre, stakeholders are concerned that prolonged shortages may disrupt industrial operations, weaken energy reliability, and deepen cost pressures for businesses across Nigeria’s largest economic hub.