Energy

Crude Oil Price Rises to a New High as Petrol Landing Cost Hits N1,000 Per Litre

Updated Thursday, February 15, 2024 at 11:15 AM by Pascal Oparada 3 min read

The price of crude oil prices rose to a new high following an improvement in oil production by Nigeria
The price of Brent Crude rose to $83.19 barrels, which analysts say is a good development for the Nigerian economy
The chief executive of NUPRC, Gbenga Komolafe, said that Nigeria’s oil production rose to 1.64 million barrels daily in January 2024

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Pascal Oparada has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy.

The price of Brent Crude rose to $83.19 barrels on Tuesday, February 13, 2024, an increase of $1.19 compared to its cost the previous day, according to data from the Nigerian government, showing that the country’s output rose to 1,426,574 barrels per day in January 2024.

The gain in crude oil price and the increase in Nigeria’s output would lead to more Forex earnings for the country, which has battled FX scarcity for months.

Nigeria's crude oil output rises

In its latest crude oil condensate data, the Nigerian Upstream Regulatory Commission (NUPRC) said the country’s output increased by 91,476 barrels per day in January 2024 compared to the production figure of 1,335,098 barrels per day.

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The NUPRC figures showed that with the addition of condensate, Africa’s largest oil producer’s output rose to 1.64 million barrels per day in January 2024, up from the 1.55 million barrels per day recorded in December 2023.

The Nigerian government has been trying to increase the country’s oil production, reduce pipeline vandalism and meet the oil production quota approved by the Organisation of Petroleum Exporting Countries (OPEC).

The chief executive of NUPRC, Gbenga Komolafe, stated this on Tuesday, February 13, 2023, saying that the Commission has adopted measures to tackle challenges facing the oil and gas industry and boost production.

New crude oil output to improve FX

Komolafe stated this as he presented a country address at the Petroleum Technology Association of Nigeria Sub-Saharan Africa International Petroleum Exhibition and Conference.

He said Nigeria’s oil production averages 1.586 million barrels daily, adding that it consists of 1.33 million barrels of liquid and 256,000 condensate oil production.

Punch reports that the NUPRC boss explained that some of the measures adopted by the Commission include transparency in hydrocarbon measurement and accounting, collaborative work programme administration with the explorations and production companies, and close monitoring to ensure that standards are met.

The development comes as OPEC said Nigeria is the most improved oil-producing country, beating Saudi Arabia and the US.

Petrol landing cost hits N1,000 per litre

Legit.ng reported that as Nigeria's foreign exchange crisis worsened, the landing cost of imported petrol exceeded N1,000 per litre.

Findings by BusinessDay indicated that the landing cost of gasoline—which includes the product's foreign pricing, transportation, insurance, and other charges—rose to N1,009/litre in October 2023 from N720/litre at the black-market rate of N1,500 per dollar.