Fuel Prices May Rise As Crude Nears $80/Barrel

The prices of refined petroleum products may rise in the coming days following the increase in the cost of Brent, the global benchmark for crude.

Crude oil is a major commodity that determines the prices of refined petroleum products. On Sunday, the price of Brent reached $79.76 per barrel.

The rise in the cost of the commodity from the $72.88 recorded in December 2024 that fuel prices across Nigerian depots may be impacted.

The increase in Brent price is attributed to geopolitical tensions, particularly sanctions imposed on Russian oil exports. Supply concerns and seasonal demand fluctuations in colder regions have also contributed to the upward trend

Sources said 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.”