Brent crude price surge to $79.76 fuels expectations of increased fuel costs in Nigeria, with diesel prices already climbing at depots.

[dropcap]T[/dropcap]he cost of refined petroleum products in Nigeria is poised for an upward adjustment as Brent crude, the global benchmark for oil prices, surged to $79.76 per barrel on Sunday.

This marks a significant increase from the $72.88 recorded in December 2024, raising concerns about higher fuel costs across the nation.

Also read: Dangote refinery cuts ex-depot rates, petrol price drops N935

Brent crude prices have a direct impact on refined petroleum products, including diesel and petrol, as most Nigerian depots rely on imports tied to global oil benchmarks.

Analysts attribute the recent price hike to geopolitical tensions, including sanctions on Russian oil exports, coupled with seasonal demand surges in colder regions and ongoing supply constraints.

Early indications of price increases have already been observed at fuel depots. For example, Nipco depot in Lagos raised its diesel prices by ₦70 per litre, from ₦1,050 to ₦1,120, while Prudent depot closed the week at ₦1,045 per litre, up from ₦1,025.

Industry experts predict that more depots will follow suit, with refined petroleum products potentially becoming more expensive in the coming days.

Olatide Jeremiah, Chief Executive Officer of petroleumprice.ng, commented on the trend, noting, “As of Friday, when Brent crude neared $80, prices selectively increased in some Lagos depots.

On Monday, we expect further price adjustments by importers, as Brent crude significantly influences the refining and import costs.”

The Federal Government’s oil price benchmark for the 2025 budget is $75 per barrel, a figure already surpassed by the current Brent price.

As a result, importers are likely to adjust their prices to offset the rising procurement and shipping costs, further impacting fuel affordability for consumers.

This development follows a series of economic challenges linked to energy costs, with inflation recently reaching 33.88%.

Experts warn that sustained increases in crude oil prices could exacerbate inflationary pressures and strain Dangote refinery cuts ex-depot rates, petrol price drops N935