The cost of refined petroleum products in Nigeria could increase in the coming days, following a rise in the price of Brent crude, the global benchmark for crude oil.
As of Sunday, Brent crude was priced at $79.76 per barrel, a significant jump from the $72.88 per barrel recorded in December 2024.
This increase is likely to impact fuel prices across Nigerian depots, given the country’s dependence on imported refined petroleum products and the direct link between crude oil prices and fuel costs.
Analysts attribute the rise in Brent prices to several factors, including geopolitical tensions and sanctions imposed on Russian oil exports. Additionally, supply concerns and seasonal demand spikes in colder regions have added to the upward pressure on global crude prices.
The potential hike in fuel prices could have wide-ranging effects on the Nigerian economy, with transportation costs and the prices of goods and services expected to rise.
Sources informed our correspondent that several fuel depots began reporting price increases for diesel on Friday, marking the start of a noticeable rise in fuel costs across various regions.
Analysts also suggested that the Brent crude price surge is a major driver, as many Nigerian depot owners rely on imports to meet diesel demand.
The correlation between crude oil prices and refined products is well-established, as Brent serves as a benchmark for global petroleum product pricing.
With the increase in crude oil costs, importers are likely to adjust their prices to cover higher procurement and shipping costs.
Recall that the Federal Government’s oil price benchmark in the 2025 budget estimates is $75 per barrel.
Price data obtained by our correspondent analysing diesel price movements at the loading depot showed that the Nipco depot in Lagos saw an increase of N70 from N1,050 to N1,120 per litre on Friday.
Prudent depot recorded an increase, closing the week at N1,045, compared to an earlier N1,025 per litre.
Commenting on the development, an oil and gas expert, Olatide Jeremiah, said depots are poised to increase the loading price of refined petroleum products on Monday.
Jeremiah, who is the Chief Executive Officer of petroleumprice.ng, said, “It implies that there is a possibility of increased fuel prices, particularly diesel prices.
“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.”
(Punch)
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