Gas costs could rise as crude nears $80/barrel

The costs of refined petroleum merchandise could rise within the coming days following the rise in the price of Brent, the worldwide benchmark for crude.

Crude oil is a significant commodity that determines the costs of refined petroleum merchandise. On Sunday, the value of Brent reached $79.76 per barrel.

The rise in the price of the commodity from the $72.88 recorded in December 2024 that gas costs throughout Nigerian depots could also be impacted.

The rise in Brent value is attributed to geopolitical tensions, significantly sanctions imposed on Russian oil exports. Provide issues and seasonal demand fluctuations in colder areas have additionally contributed to the upward development.

Sources knowledgeable our correspondent that a number of gas depots started reporting value will increase for diesel on Friday, marking the beginning of a noticeable rise in gas prices throughout varied areas.

Analysts additionally prompt that the Brent crude value surge is a significant driver, as many Nigerian depot homeowners depend on imports to satisfy diesel demand.

The correlation between crude oil costs and refined merchandise is well-established, as Brent serves as a benchmark for world petroleum product pricing.

With the rise in crude oil prices, importers are prone to alter their costs to cowl greater procurement and transport prices.

Recall that the Federal Authorities’s oil value benchmark within the 2025 finances estimates is $75 per barrel.

Worth information obtained by our correspondent analysing diesel value actions on the loading depot confirmed that the Nipco depot in Lagos noticed a rise of N70 from N1,050 to N1,120 per litre on Friday.

Prudent depot recorded a rise, closing the week at N1,045, in comparison with an earlier N1,025 per litre.

Commenting on the event, an oil and gasoline professional, Olatide Jeremiah, mentioned depots are poised to extend the loading value of refined petroleum merchandise on Monday.

Jeremiah, who’s the Chief Govt Officer of petroleumprice.ng, mentioned, “It implies that there’s a chance of elevated gas costs, significantly diesel costs.

“As of Friday, when Brent crude neared $80, costs selectively elevated in some depots in Lagos, and on Monday, costs is perhaps jacked up by importers as a result of a big chunk of oil entrepreneurs import petroleum merchandise and Brent crude is a significant figuring out issue within the refining course of.”