The prices of refined petroleum products may increase in the coming days due to the rise in Brent crude oil prices.
On Sunday, the price of Brent reached $79.76 per barrel, and since crude oil is a key factor in determining the cost of refined products, this surge could lead to higher prices for gasoline, diesel, and other petroleum derivatives.
The rise in Brent crude oil prices from $72.88 in December 2024 suggests that fuel prices at Nigerian depots could be affected.
The increase is largely driven by geopolitical tensions, including sanctions on Russian oil exports, as well as supply concerns and seasonal demand shifts in colder regions, all contributing to the upward trend.
Sources said that several fuel depots began reporting price increases for diesel on Friday, signaling the beginning of a noticeable rise in fuel costs across various regions.
Analysts noted that the surge in Brent crude prices is a key factor, as many Nigerian depot owners depend on imports to meet diesel demand.
The link between crude oil prices and refined products is well-established, as Brent acts as a benchmark for the pricing of petroleum products worldwide.
With the rise in crude oil prices, importers are expected to adjust their prices to account for higher procurement and shipping costs.
It is also worth noting that the Federal Government’s oil price benchmark for the 2025 budget is set at $75 per barrel.
In the Price data obtained, analyzing diesel price movements at the loading depot, revealed that the Nipco depot in Lagos saw an increase of N70, from N1,050 to N1,120 per litre on Friday.
Prudent Depot also recorded a price increase, closing the week at N1,045 per litre, up from the previous N1,025.
Commenting on the development, oil and gas expert, Olatide Jeremiah, stated that depots are expected to raise the loading price of refined petroleum products on Monday.
Jeremiah, the Chief Executive Officer of petroleumprice.ng, stated, “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.”