Nigerians brace for possible petrol price increment

Nigerians may face a fresh spike in fuel prices as the cost of Brent crude, the global benchmark for oil, climbed to $79.76 per barrel on Sunday, up from $72.88 in December 2024.

The rise in crude prices is expected to ripple through the petroleum supply chain, affecting refined products like diesel and petrol.

Industry experts have linked the increase to heightened geopolitical tensions, including sanctions on Russian oil exports. Seasonal demand pressures in colder regions have further tightened global supply, driving up prices.

Reports indicate that several Nigerian fuel depots have already adjusted diesel prices since Friday, signaling the onset of rising costs across different regions. Depot owners, many of whom rely heavily on imports, are adjusting prices to reflect the higher procurement and shipping expenses driven by the Brent surge.

The correlation between crude oil prices and refined petroleum products is well-known, as Brent serves as a key pricing benchmark worldwide. Consequently, analysts predict a potential cascade effect on fuel prices at retail outlets in the coming days.

It is worth noting that the Federal Government pegged its oil price benchmark at $75 per barrel in the 2025 budget estimates. However, the current market volatility may challenge these projections, adding pressure to domestic fuel markets already burdened by subsidy removals and inflationary trends.