Nigeria’s downstream oil sector is facing renewed uncertainty following Dangote Refinery’s suspension of fuel sales since Tuesday, June 17, 2025. The move has triggered fears of an imminent price hike, especially with global crude oil benchmarks climbing due to rising tensions between Iran and Israel.
The halt in supply, which extended into Wednesday, June 18, has caused anxiety among Depot owners and major fuel buyers. Many expect Dangote to resume with new, higher prices that could immediately ripple through the supply chain. In recent months, Dangote’s pricing actions have heavily influenced depot-level pricing nationwide, particularly in Lagos.
Depot Prices Uncertain as Market Awaits Dangote’s Decision
At the moment, most Depot operators are holding off on fixing prices, preferring to observe market signals. Diesel prices have already crossed the ₦1,000 mark in Lagos, and rates outside the state are even higher due to additional logistics costs.
On Wednesday, June 18, the following depot prices were recorded:
- Lagos:
- Petrol (PMS): Wosbab – ₦895, Emadeb – ₦875
- Diesel (AGO): Nipco – ₦1,050, Ibachem – ₦1,000
- Warri:
- PMS: Matrix – ₦910
- AGO: Taurus – ₦1,010
- Port Harcourt:
- PMS: Sigmund – ₦920
- AGO: Bulk Strategic – ₦1,105
- Calabar:
- PMS: Fynefield – ₦915
These prices reflect growing market tension and speculation. With international crude oil now at elevated levels, driven by geopolitical risks and supply fears, local refineries and depots are struggling to maintain stable prices.
Market Braces for Fresh Volatility
The situation has left market players in a wait-and-see mode. Many believe Dangote’s eventual price adjustment will serve as the next benchmark for depots nationwide. If prices rise sharply, downstream costs could soar further, raising pump prices for consumers already burdened by inflation and a volatile forex environment.
As global oil markets continue to fluctuate, Nigeria’s fuel supply chain remains on edge. What happens next hinges on Dangote’s pricing decision and how quickly depot owners react to maintain supply without eroding already thin margins.