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 significant commodity that determines the prices of refined petroleum products. On Sunday, the price of Brent reached $79.76 per barrel.
The rise in the commodity cost from the $72.88 recorded in December 2024 is why 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.
The PUNCH reports sources informed as saying 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 increased crude oil costs, importers will likely 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, who analysed diesel price movements at the loading depot, showed that the Nipco depot in Lagos saw an N70 increase from N1,050 to N1,120 per litre on Friday.
