The prices of petrol and other petroleum products may increase in the coming days following an increase in the cost of crude oil in the international market.
Brent crude, which serves as a benchmark for global oil prices, rose to $81.09 per barrel on Monday, up from approximately $76 last week. This development surpasses the Nigerian government’s 2025 budget benchmark of $75 per barrel.
The rise in crude oil prices is attributed to geopolitical tensions and sanctions on Russian oil exports, which have heightened concerns over global supply.
In Nigeria, the increase in crude oil prices is expected to impact the landing cost of petrol and ex-depot prices across depots. Reports indicate that the landing cost of petrol, which stood at N887.51 per litre as of December 19, 2024, may rise further due to this development.
Similarly, the price of diesel has already seen an adjustment, with depot prices in Lagos increasing by N70, from N1,050 to N1,120 per litre.
Despite recent reductions in petrol prices following ex-depot price adjustments announced by Dangote Refinery and the Nigerian National Petroleum Company Limited, which lowered retail prices to between N935 and N965 per litre, Nigerians currently pay between N935 and N1,100 per litre nationwide.
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The anticipated hike in petrol prices could exacerbate inflation, with November’s headline inflation at 34.60% and food inflation at 39.93%.
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