PMS prices may rise as crude closes on $80/barrel

The cost of refined petroleum products in Nigeria may see a significant increase following a surge in the price of Brent crude, the global benchmark for oil, which climbed to $79.76 per barrel on Sunday.

This marks a notable rise from the $72.88 recorded in December 2024, potentially impacting fuel prices at depots across the country.

The price hike is attributed to geopolitical tensions, including sanctions on Russian oil exports, supply concerns, and seasonal demand in colder regions. These factors have driven up global crude prices, which are directly linked to the cost of refined petroleum products.

Reports indicate that several Nigerian fuel depots began adjusting diesel prices on Friday. At Nipco depot in Lagos, prices rose by N70, moving from N1,050 to N1,120 per litre, while Prudent depot increased its rate to N1,045 from N1,025 per litre.

Oil and gas analysts warn that the trend may continue. Olatide Jeremiah, CEO of petroleumprice.ng, explained, “Depots are preparing to adjust the loading price of refined petroleum products. This implies a likely increase in diesel prices, with ripple effects across the economy.”

The Federal Government’s 2025 budget has pegged the oil price benchmark at $75 per barrel. However, with Brent crude prices exceeding this estimate, importers are expected to adjust their prices to account for rising procurement and shipping costs.

“As of Friday, when Brent crude neared $80, prices selectively increased in some depots in Lagos, and on Monday, prices might be jacked up by importers because a large chunk of oil marketers import petroleum products and Brent crude is a major determining factor in the refining process.”