The prices of refined petroleum products in Nigeria may increase soon, following a surge in the cost of Brent crude, the global benchmark for oil.
On Sunday, Brent crude climbed to $79.76 per barrel, up from $72.88 in December 2024, signaling potential impacts on fuel prices at depots across the country.
Geopolitical tensions, including sanctions on Russian oil exports, coupled with seasonal demand and supply concerns, have driven the price surge. Sources reveal that several fuel depots began increasing diesel prices on Friday, sparking a noticeable rise in fuel costs across regions.
Analysts link the rise in Brent prices to the heavy reliance of Nigerian depot owners on imports to meet diesel demand. The correlation between crude oil and refined product prices is clear, with Brent serving as a global benchmark. Higher crude prices are likely to push importers to adjust their pricing to account for increased procurement and shipping expenses.
As of Friday, depot price data indicated notable increases: the Nipco depot in Lagos raised diesel prices by N70, from N1,050 to N1,120 per litre, while Prudent depot’s price rose from N1,025 to N1,045 per litre.
Olatide Jeremiah, CEO of petroleumprice.ng, emphasized the likelihood of further price hikes for refined products, particularly diesel, at depots starting Monday. “This suggests a possible rise in fuel prices,” he noted.
The Federal Government’s 2025 budget has an oil price benchmark of $75 per barrel, underscoring the potential economic impact of Brent’s current upward trend.
“As of Friday, when Brent crude neared $80, prices selectively increased in some depots in Lagos, and on Monday, prices might be jacked up by importers because a large chunk of oil marketers import petroleum products and Brent crude is a major determining factor in the refining process.”
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