In a swift market reaction to climbing international crude prices, Nigerian depot owners and petroleum marketers have raised the ex-depot price of diesel by 2.8 percent.
This change has caused the market price to go up from ₦1,410 per liter on Tuesday to ₦1,450 per liter on Wednesday, following a sharp increase in global crude oil prices due to renewed geopolitical tensions in the Middle East.
The adjustment, implemented within just 24 hours, underscores the immediate pass-through effect of global energy price movements on the domestic downstream sector.
On Wednesday, Brent crude was traded at $78.36 per barrel, marking a 5.66% increase, while West Texas Intermediate (WTI) rose to $74.30 per barrel, showing a 5.48% gain.
Earlier, some Nigerian filling stations had shut down over premium motor spirit price speculation hikes.
On Thursday morning showed Total, Emedab, and other filling stations are closed.
The national president of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, on the situation, he said genuine petrol retailers will not close their outlets over fuel price speculation.
He, however said that the association will monitor the situation.
It is not possible for a genuine petrol retailer to shut a station over price speculation, because price can change to their disfavor. However, we are going to monitor the situation,” he noted.
This comes amid the resurgence of hike in crude oil prices on Wednesday upon the resumption of airstrikes by the United States and Iran in the Middle East.
The US President, Donald Trump had announced that the ceasefire between his country and Iran has ended.
Crude oil prices, particularly Brent and West Texas Intermediate, immediately surged by over 4 percent to $77 and $73 per barrel, up from $72 and $68 per barrel the previous day.
Noticing the price volatility, depot owners in Nigeria quickly increased automotive gas oil and diesel prices by 3 percent to N1,450 per liter.
Meanwhile, fuel prices have remained flat on Thursday in most filling stations in Abuja and environs at N1155 and N1299 per liter.
In the last three to four weeks, retail pump prices have dropped by at least N125 per liter, according to the Independent Petroleum Marketers Association of Nigeria.
On Wednesday, Dangote Refinery announced free delivery of its petrol product at N1075 per dollar in five states and the Federal Capital Territory, Abuja.
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