Depot fuel prices across Nigeria are expected to come under downward pressure as international crude prices crash on renewed expectations that the Strait of Hormuz could reopen following advancing diplomatic talks between the United States and Iran.
As at the time of writing 07:20 am (WAT), Brent crude, the global benchmark, traded at $98.17 per barrel, down 5.19 per cent, while West Texas Intermediate (WTI) stood at $91.25 per barrel, a 5.54 per cent decline, according to Oilprice.com.
The sharp drop reflects growing trader confidence that easing Middle East tensions could restore crude flows through one of the world’s most sensitive oil shipping corridors.
In Nigeria’s downstream market, depot prices at the close of trading on Friday showed Lagos depots selling Automotive Gas Oil (AGO) at an average of ₦1,802 per litre, while Premium Motor Spirit (PMS) stood at ₦1,277 per litre.
These levels remain under pressure from import parity costs and foreign exchange movements, even as global crude prices weaken.
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In Warri, PMS averaged ₦1,285 per litre, while AGO sold at about ₦1,805 per litre. The marginal spread between Lagos and Warri reflects distribution costs, tanker movement charges, and regional supply differences across the Niger Delta logistics corridor.
Port Harcourt depots closed the week with AGO priced at around ₦1,810 per litre, while Calabar recorded PMS at about ₦1,290 per litre. The figures underline how coastal supply constraints continue to create pricing gaps across depots despite a shared national market.
Industry operators say the recent global crude slide is already reshaping sentiment in the downstream sector, with importers beginning to reassess landing cost expectations ahead of fresh cargo arrivals. However, actual depot adjustments remain gradual due to previously priced inventory still in circulation.
The international oil market is reacting to reports that negotiations aimed at reopening the Strait of Hormuz have reached advanced stages, raising hopes that supply disruptions linked to the Middle East conflict may ease sooner than expected. The Strait remains a critical artery for global crude exports, and any reopening is expected to immediately soften risk premiums in oil pricing.
For Nigeria, any sustained relief in crude prices will feed into depot pricing, but domestic adjustments will still depend heavily on Dangote Refinery’s pricing structure, import landing costs, and existing stock levels already held by marketers.
petroleumprice.ng
