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.
A number of fuel depots started announcing diesel price hikes on Friday, according to the source, which signaled the beginning of a discernible increase in fuel prices in different areas.
With many Nigerian depot owners depending on imports to meet diesel demand, analysts also noted that the recent spike in the price of Brent crude is a significant reason.
Since Brent acts as a standard for the price of petroleum products worldwide, the relationship between crude oil prices and refined product prices is well-established.
Commenting on the issue, an oil and gas expert, Olatide Jeremiah, said depots are prepared to hike the loading price of refined petroleum products on Monday.
Chief Executive Officer of petroleumprice.ng Jeremiah stated, “It implies that there is a possibility of increased fuel prices, particularly diesel prices.
“As of Friday, when Brent crude neared $80, prices selectively increased in some depots in Lagos, and 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.”