MARKETERS HIKE PMS PRICES, BLAME RISING MIDDLE EAST TENSIONS



Oil marketers have increased the depot prices of Premium Motor Spirit (PMS), also known as petrol, in response to rising global crude prices and escalating geopolitical tensions in the Middle East. With Brent crude trading at $77.88 per barrel and WTI at $74.67, depot owners across Nigeria are adjusting prices upward, reacting to increased global demand and market uncertainty.

According to the latest intelligence report from Petroleumprice, depot prices for both PMS and Automotive Gas Oil (AGO or diesel) have surged across major Nigerian cities, with expectations of further hikes if the conflict between Israel and Iran intensifies. 

As of June 20, 2025, at Lagos depots, the Dangote Refinery sells PMS at ₦880 and AGO at ₦1,055. At NIPCO, PMS is sold at ₦920 and AGO at ₦1,100, while Wosbab offers PMS at ₦920 and AGO at ₦1,050. In Warri, Matrix Energy sells PMS at ₦925 and AGO at ₦1,050, and A&E lists PMS at ₦920. At Calabar depots, Mainland sells PMS at ₦935, while Fynefield offers it at ₦928. In Port Harcourt, Bulk Strategic sells AGO at ₦1,100, and Sigmund lists PMS at ₦930.

Several key factors are contributing to the spike in depot prices. First is the ongoing instability in the Middle East, particularly the conflict involving Israel and Iran, which has heightened uncertainty in global oil supply routes and reintroduced risk premiums in oil trading. 

Buyers are reacting to worst-case scenarios, and the ripple effects are being felt across oil-dependent economies like Nigeria. Another major driver is the Dangote Refinery’s need to import over 17 million barrels of crude oil due to local supply shortfalls. This has added considerable foreign exchange and logistics costs, which are now reflected in ex-depot pricing.

Additionally, the naira’s depreciation, with rates hovering around ₦1,605 to the dollar in the parallel market, has inflated import-related expenses for both diesel and petrol. Depots are also recalibrating their pricing models to accommodate rising transport, handling, and distribution costs, particularly with mounting pressure at Lagos and Delta jetties.

Looking ahead, independent marketers are adjusting their loading strategies in response to the challenging logistics environment. Downstream supply chains, especially those servicing the northern regions, are facing steep operating costs. With depot-level prices like Dangote’s PMS at ₦880, Matrix Warri at ₦925, and Mainland Calabar at ₦935, the impact is quickly trickling down to the retail segment.

The convergence of international oil price hikes, import dependency, forex volatility, and geopolitical threats is fueling Nigeria’s upward-trending depot prices. As a result, consumers should brace for a likely rise in pump prices in the coming days.

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