The cost of refined petroleum products in Nigeria is expected to rise in the coming days, driven by the recent surge in the price of Brent crude, the global benchmark for oil.
As of Sunday, Brent crude traded at $79.76 per barrel, up from $72.88 recorded in December 2024. This sharp increase is projected to impact fuel prices at depots nationwide, especially for diesel.
Experts attribute the rise in crude oil prices to geopolitical tensions, including sanctions on Russian oil exports, as well as seasonal demand fluctuations and supply concerns in colder regions.
Reports from fuel depots indicate that the price of diesel began climbing on Friday. For instance, the Nipco depot in Lagos saw a N70 increase, with prices moving from N1,050 to N1,120 per litre. Similarly, Prudent depot reported a rise from N1,025 to N1,045 per litre.
Oil and gas analysts have highlighted the close correlation between crude oil prices and refined petroleum product costs. Brent crude serves as a key benchmark for global pricing, and higher crude prices inevitably lead to increased costs for importers, who must account for elevated procurement and shipping expenses.
Olatide Jeremiah, Chief Executive Officer of petroleumprice.ng, explained the implications:
“There is a strong likelihood of increased fuel prices, especially for diesel. By Friday, as Brent crude approached $80 per barrel, some depots in Lagos had already raised their prices. On Monday, further adjustments by importers are expected due to their reliance on crude oil prices as a major determinant in the refining and importation processes.”