The recent surge in Brent prices is largely attributed to geopolitical tensions, including sanctions on Russian oil exports, as well as supply concerns and seasonal demand variations in colder regions. Reports from various fuel depots indicate that diesel prices began to rise on Friday, signaling a broader trend of increasing fuel costs across multiple areas.
Analysts have pointed out that the spike in Brent crude prices is a significant factor, especially since many Nigerian depot operators depend on imports to satisfy diesel demand. The established relationship between crude oil prices and refined products underscores Brent's role as a key benchmark in global petroleum pricing.
As crude oil prices climb, importers are likely to raise their prices to accommodate higher procurement and shipping expenses. It is noteworthy that the Federal Government's oil price benchmark for the 2025 budget is set at $75 per barrel.
Recent data on diesel price fluctuations at loading depots revealed that the Nipco depot in Lagos increased its price from N1,050 to N1,120 per litre, a rise of N70. Similarly, the Prudent depot reported an increase, ending the week at N1,045, up from N1,025 per litre.
Olatide Jeremiah, an oil and gas expert and CEO of petroleumprice.ng, commented on the situation, indicating that depots are likely to raise the loading prices of refined petroleum products on Monday. He noted that this suggests a potential increase in fuel prices, particularly for diesel.
“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.”