PETROL PRICES COULD RISE AS CRUDE OIL REACHES $81 PER BARREL
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The cost of premium motor spirit and other refined petroleum products may increase in the coming days due to the rise in crude oil prices, including brent.
On monday, it was reported that the price of brent crude rose to $81.09 per barrel, up from around $76 last week.
It is important to note that the nigerian government benchmarked the oil price at $75 per barrel in the 2025 budget proposal.
The increase in brent crude prices is linked to geopolitical tensions, particularly sanctions on russian oil exports, which have caused supply concerns.
This price increase could affect the ex-depot prices of refined petroleum products across nigeria’s depots.
On friday, it was reported that the price of automotive gas oil (diesel) had already been increased by at least n70, from n1,050 to n1,120 per litre in lagos depots.
Data from the major energy marketers association of nigeria, dated december 19, 2024, revealed that the landing cost of petrol stood at n887.51 per litre; however, the rise in crude oil prices means the landing cost may rise in the coming days.
In recent weeks, the price of petrol had actually decreased.
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It is worth remembering that dangote refinery and the nigerian national petroleum company limited announced a reduction in ex-depot petrol prices last year, causing retail prices to drop to between n935 and n965 per litre, down from n1,040 per litre.
As a result, nigerians are currently purchasing petrol for between n935 and n1,100 per litre nationwide.
Any increase in petrol prices could further drive up the cost of goods and services, which are already high, with november’s headline inflation and food inflation reported at 34.60 percent and 39.93 percent, respectively.
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