Fuel Prices May Rise as Brent Crude Oil Nears $80/Barrel.

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The prices of refined petroleum products in Nigeria may increase in the coming days due to the rising cost of Brent crude, the global benchmark for crude oil. On Sunday, the price of Brent reached $79.76 per barrel, up from $72.88 in December 2024.

The increase in Brent price is attributed to geopolitical tensions, particularly sanctions imposed on Russian oil exports, as well as supply concerns and seasonal demand fluctuations in colder regions.

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 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.

According to the Federal Government’s 2025 budget estimates, the oil price benchmark is $75 per barrel. However, the current price surge may lead to increased fuel prices, particularly diesel prices.

Data obtained by our correspondent showed that some depots in Lagos, including Nipco and Prudent, increased their diesel prices on Friday. 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.

Jeremiah, the Chief Executive Officer of (link unavailable), stated, “As Brent crude neared $80, prices selectively increased in some depots in Lagos. 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.

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