The prices of refined petroleum products in Nigeria are expected to rise following an increase in the cost of Brent crude, the global benchmark. On Sunday, Brent reached $79.76 per barrel, up from $72.88 recorded in December 2024. This surge, driven by geopolitical tensions, particularly sanctions on Russian oil exports, as well as seasonal demand fluctuations, is likely to impact fuel prices across Nigerian depots.
Reports indicate that several fuel depots have already begun increasing diesel prices, with the trend expected to continue. Analysts highlight the direct correlation between crude oil prices and refined petroleum products, noting that many Nigerian depot owners depend on imports to meet diesel demand. Brent crude serves as a crucial benchmark, and its rising cost will likely lead to higher procurement and shipping expenses for importers, prompting price adjustments.
The Federal Government’s 2025 budget sets an oil price benchmark at $75 per barrel, but current trends suggest upward revisions. For instance, the Nipco depot in Lagos raised diesel prices from N1,050 to N1,120 per litre, while Prudent depot saw an increase from N1,025 to N1,045 per litre. Oil and gas expert Olatide Jeremiah noted that the rising Brent crude prices could lead to further hikes in fuel prices, particularly diesel, as importers adjust to cover increased costs