New Fuel Prices to Emerge as Crude Oil Soars in International Market
- The rise in crude oil prices may signal an increase in petroleum product prices nationwide
- Brent crude, a key benchmark for petroleum product prices, rose to almost $80 per barrel on Sunday, January 12, 2025
- Already, marketers have adjusted diesel prices by almost N70 from N1,050 to N1,120 per litre as of Friday, January 10, 2025
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Nigerians may experience a rise in petroleum product prices in the coming days due to the increase in the cost of Brent, the global benchmark for crude.
Crude oil price is a key commodity that sets the price of refined petroleum products.
Source: UGC
Crude oil prices rise in the international market
According to reports, on Sunday, January 12, 2025, Brent crude price reached $79.76 per barrel.
The increase in the commodity price from $72.88 recorded in December 2024 impacted fuel prices across Nigerian depots.
Experts have attributed the rise in price to geopolitical tensions, particularly sanctions on Russian oil exports by the US.
Also, supply issues and seasonal demand fluctuations in colder regions may be responsible for the rise in crude prices.
Marketers adjust prices at depots
Findings showed that several fuel depots began reporting diesel price increases on Friday, January 10, 2025, marking the beginning of a rise in fuel costs.
Experts have said the Brent crude oil price surge is a major driver, as many Nigerian depot owners depend on it to meet diesel demand.
The relationship between crude oil prices and refined products is well-established, as Brent is a global benchmark for petroleum product pricing.
With crude prices increasing, importers are likely to implement new prices to cover higher procurement and shipping costs.
The Nigerian government’s oil price benchmark in the 2025 budget projects price at $75 per barrel.
According to available data, diesel price movements at the loading depot indicate that NIPCO depot, in law, increased their prices by N70 from Friday, January 10, 2025, from N1,050 to N1,120 per litre.
Punch reports that Prudent Depot increased its prices to N1,045 from N1,025 per litre.
Marketers give reason for the slow distribution of fuel
Energy analysts disclosed that depots were on standby to increase loading prices of refined petroleum products beginning Monday, January 13, 2025.
Meanwhile, marketers have blamed the slow pace of construction work on the East-West Road for the poor distribution of petroleum products from the Port Harcourt refinery.
The Petroleum Retail Outlet Owners Association of Nigeria (PETROAN) said the slow pace of work on the East-West Road has impacted about 60 filling stations.
Marketers and oil companies partner to build new refinery
Legit.ng earlier reported that Petroleum products marketers and three oil firms inked a deal to build a 50,000 barrels per day capacity refinery,
PETROAN signed the agreement with Claridge Petroleum Company Limited, Oasis Petroleum Products Limited and another company on Wednesday, January 8, 2025.
Billy Gillis-Harry, PETROAN national president, disclosed that the deal was signed to provide Nigerians with affordable fuel.
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Source: Legit.ng
