The cost of refined petroleum products is expected to rise soon, following an increase in Brent crude oil prices, the global benchmark for crude.
Brent crude, which significantly influences the pricing of refined petroleum products, reached $79.76 per barrel on Sunday, up from $72.88 recorded in December 2024. This rise is anticipated to impact fuel prices across Nigerian depots.
The surge in Brent prices is attributed to geopolitical factors, including sanctions on Russian oil exports, as well as seasonal demand shifts in colder regions and ongoing supply concerns.
Industry sources reported that several fuel depots began raising diesel prices last Friday, signaling a broader upward trend in fuel costs across various areas. Analysts pointed out that the increase in Brent crude prices directly affects Nigerian depot owners, who rely on imports to meet diesel demand.
As Brent serves as a global benchmark for petroleum product pricing, rising crude costs are likely to push importers to adjust prices to offset higher procurement and shipping expenses.
It is worth noting that the Federal Government’s oil price benchmark for the 2025 budget is set at $75 per barrel.
