The price of Brent crude surged $81.09 per barrel as of the time of filing this report from around $76 last week.
Recall that the Nigerian government in the 2025 budget proposal bench-marked oil price at $75 per barrel.
The rise in the price of Brent is attributed to geopolitical tensions, particularly sanctions imposed on Russian oil exports, which have triggered supply concerns.
The development may impact the ex-depot prices of refined petroleum fuel across depots in Nigeria.
The price of automotive gas oil, diesel, has already been adjusted by at least N70 from N1,050 to N1,120 per litre in Lagos depots on Friday.
Data from the Major Energies Marketers Association of Nigeria on December 19, 2024, showed that the landing cost of petrol stood at N887.51 per litre; however, the rise in the price of crude oil means the landing cost may go up in the coming days.
In the past weeks, the price of petrol has recorded a reduction.
Recall that Dangote Refinery and Nigerian National Petroleum Company Limited last year announced an ex-depot petrol price reduction, which led to the retail product dropping to between N935 and N965 per litre from N1040 per litre.
Consequently, Nigerians currently buy petrol between N935 and N1,100 per litre nationwide.
A rise in petrol prices may directly impact the increase in the prices of goods and services that are already on the high side, as November headline and food inflation stand at 34.60 percent and 39.93 percent, respectively.
