The Nigerian petroleum market may see a slight increase in depot prices soon due to a hike in international oil prices and a domestic distribution shutdown due to the long holiday.

Reports say that from Friday, June 6, to Monday, June 9, 2025, key petrol depots nationwide halted sales to observe the national public holiday, slowing down supply to retail stations.

Crude oil prices rise

As of Friday, June 6, 2025, Brent crude traded at $66.46 per barrel, rising to $67.91 by Tuesday, June 10, 2025, showing the rising global demand expectations and tighter output predictions due to Canadian wildfires and the Middle East crisis.

The depot closures have caused distribution challenges, as industry experts expect pump prices to change in line with the impact in the coming days, especially in urban areas. According to a report by Petroleum Price, depots which have shut down include the Mainland depot in Calabar, Ever Oil and Sigmund in Port Harcourt, First Fortune and Rainoil in Warri, and Wosbab, Aipec, and Techno Oil in Lagos.

Depot owners hike prices again

The report stated that these closures halted product loading and dispatch operations, which caused supply lag.

The global market is also contributing to the expected rise in fuel prices, as the Brent crude price hike comes from a combination of increased summer travel demand in the US, the ongoing OPEC+ output cuts, and a weaker dollar, which boosted commodity prices.

On the domestic front, Nigeria now refines fuel locally via the giant Dangote Refinery.

However, global market forces and FX fluctuations still determine prices, especially for depots that import or buy products from offshore.

Legit.ng earlier reported that in the past week, petrol ex-depot prices remained between N828 and N850 per litre, but analysts say the price may climb by N5 to N10 per litre if supply remains tight and crude prices continue to rally.

Experts predict higher petrol prices

There are projections that as depots begin full loading from Tuesday, June 10, 2025, dispatch speed will determine how supply catches up with demand.

Also, Brent crude may continue to hover above the $67-68 per barrel ceiling and may sustain pressure on domestic pricing. Experts project that exchange rate stability will also affect ex-depot price thresholds.

Marketers move against Dangote Refinery

The development comes as major petroleum product marketers in Nigeria have reportedly inked a deal with prominent global petrol suppliers to import cheaper products that will sell below Dangote and NNPC retail outlets.

According to reports, the deal will see the marketers selling petrol at about N700 per litre, far cheaper than what is obtained at NNPC and Dangote Refinery partner stations.