Petroleum product prices at Nigerian depots surged significantly today, with depot-level prices for Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO) rising by as much as ₦47 in some locations. The spike closely follows the global oil market rally recorded earlier today, as Brent crude surged by 3.69% and WTI jumped 4.03%, driven by easing U.S.-China trade tensions and tariff cuts.
Depot Prices Soar: PMS Up by ₦30–₦35, Diesel Hits ₦975
Today’s depot data shows a uniform upward movement in fuel prices across the board:
Premium Motor Spirit (PMS):
- Lagos (Rainoil): ₦870, up ₦31 from ₦839 (+3.69%)
- Warri (Matrix): ₦890, up ₦35 from ₦855
- Calabar (Fynefield): ₦905, up ₦35 from ₦870 (+4.02%)
- Port Harcourt (Ever): ₦896, up ₦30 from ₦866 (+3.46%)
Automotive Gas Oil (AGO):
- Lagos:
- Rainoil: ₦970, up ₦45 from ₦925 (+4.86%)
- Aiteo: ₦960, up ₦47 from ₦913 (+5.15%)
- Warri:
- Matrix: ₦975, up ₦15 from ₦960 (+1.56%)
- Taurus: ₦974, up ₦15 from ₦959 (+1.56%)
Why the Sudden Surge?
The hike is largely linked to the recent global crude oil price rebound, which began on Monday, May 6. Brent crude climbed to $66.27, up by $2.36 (3.69%), while WTI crude rose to $63.48, up $2.46 (4.03%), following a landmark agreement between the U.S. and China to cut tariffs and ease trade tensions.
Oil traders welcomed the move, anticipating stronger global demand. This optimism spilled into local markets as depots adjusted their prices to reflect new replacement costs and rising international benchmarks.
Dangote Refinery Pressure Also a Factor
The local price rally also comes amid intense competition between Dangote Refinery and private depot owners. Dangote recently introduced a ₦10 post-loading rebate for PMS buyers, allowing his marketers to sell at lower prices while maintaining headline rates at ₦835 per litre. This forced depot owners to reconfigure pricing strategies, pushing some to increase prices to maintain profitability.
While marketers earlier tried to match Dangote’s aggressive pricing, the recent surge in global crude has left them with little room to keep prices low.
Market Outlook
With crude oil recovering and competition intensifying, Nigerian fuel prices are expected to remain volatile in the short term. Marketers are likely to adjust their depot prices frequently in response to international benchmarks and local market dynamics.