In the coming days, we might see a rise in the prices of gasoline and other refined oil products. This is because the cost of crude oil, particularly Brent crude oil—which is used as a global pricing standard—has gone up. As of Sunday, Brent crude was priced at $79.76 per barrel, an increase from $72.88 in December 2024.
Crude oil is essential for refining because it serves as the raw material from which gasoline, diesel, and other petroleum products are made. The recent rise in prices is largely due to geopolitical issues, especially sanctions against Russian oil. Furthermore, concerns about supply and changes in demand during colder seasons in certain areas have also led to higher prices.
Reports indicate that fuel depots, where fuel is stored and distributed, started increasing diesel prices last Friday, signaling that a general price hike for fuel across different regions could be starting. Experts suggest that since many depot owners in Nigeria import their fuel, they are directly affected by fluctuations in crude oil prices like the recent increase in Brent crude. When crude oil prices go up, importers usually raise their prices to cover the higher costs of buying and shipping the oil.
For example, data from our research shows that the Nipco depot in Lagos raised the price of diesel from ₦1,050 to ₦1,120 per liter. Similarly, the Prudent depot also increased its diesel price from ₦1,025 to ₦1,045 per liter.
Olatide Jeremiah, an expert in the oil and gas sector, stated that it’s likely that starting Monday, the prices for refined oil products in depots will continue to rise. When the price of Brent crude neared $80 per barrel last Friday, we already saw selective increases in some depots in Lagos. This trend suggests that we may see further increases in fuel prices, particularly for diesel, as many oil marketers rely on imported petroleum products, which are influenced significantly by Brent crude prices.
It’s worth noting that the Nigerian government’s budget for 2025 predicted an average price of $75 per barrel for oil, indicating their expectations for future oil pricing.
