Fuel prices may rise as crude nears $80/barrel

The rising price of Brent, the world standard for crude oil, may lead to an increase in the price of refined petroleum products in the days ahead.

One important commodity that affects the cost of refined petroleum products is crude oil. Brent's price hit $79.76 per barrel on Sunday.

Fuel prices at Nigerian depots may be affected by the increase in the commodity's price from the $72.88 reported in December 2024.

Geopolitical tensions, including the sanctions placed on Russian oil shipments, are blamed for the rise in the price of Brent. The increasing tendency has also been influenced by supply issues and seasonal variations in demand in colder climates.

Our correspondent was notified by sources that a number of fuel stores started to announce diesel price hikes on Friday, which signalled the beginning of a discernible increase in fuel prices in different areas.

Given that many Nigerian depot owners depend on imports to supply the demand for diesel, analysts also claimed that the recent spike in the price of Brent crude is a significant factor.

Since Brent is used as a standard for the price of petroleum products worldwide, there is a well-established relationship between the price of crude oil and refined goods.

Importers would probably raise their pricing to offset increased costs for shipping and procurement as a result of the rise in crude oil prices.

Keep in mind that $75 per barrel is the benchmark oil price set by the Federal Government in the 2025 budget predictions.

The Nipco depot in Lagos experienced a price hike of N70 from N1,050 to N1,120 per litre on Friday, according to the data our correspondent collected while studying diesel price movements at the loading station.

Prudent Depot saw a rise, ending the week at N1,045 per litre as opposed to N1,025 earlier.

Olatide Jeremiah, an expert in oil and gas, commented on the event, stating that depots are expected to raise the loading price of refined petroleum products on Monday.

"It implies that there is a possibility of increased fuel prices, particularly diesel prices," stated Jeremiah, the CEO of petroleumprice.ng.

Since a significant portion of oil marketers import petroleum products and Brent crude is a key determinant in the refining process, prices may be raised by importers on Monday. As of Friday, when Brent crude approached $80, prices in several Lagos depots increased selectively.