- Brent crude surged from $76 to $81.09 per barrel. This could drive up petrol prices in Nigeria.
- Diesel and automotive gas oil prices have increased by N70, from N1,050 to N1,120 per litre in Lagos depots.
- Higher fuel prices could worsen Nigeria’s inflation, which stood at 34.60% for headline inflation and 39.93% for food inflation in November 2024.
Petrol prices in Nigeria may rise following a recent surge in Brent crude prices. On January 13, Brent crude reached $81.09 per barrel, up from $76 last week.
Geopolitical tensions, especially sanctions on Russian oil exports, have raised concerns about supply disruptions. The increase in crude oil prices will likely impact the cost of refined petroleum products in Nigeria.
Ex-depot petrol prices in Nigeria may also increase. Sources revealed that the prices of automotive gas oil (AGO) and diesel have increased by N70, from N1,050 to N1,120 per litre, in Lagos depots.
Data from the Major Energy Marketers Association of Nigeria in December 2024 showed that the landing cost of petrol stood at N887.51 per litre. With rising crude oil prices, the landing cost of gasoline will likely rise further in the coming days.
This surge in crude oil prices follows falling fuel prices in Nigeria. Last year, Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPCL) reduced the ex-depot petrol price, bringing retail prices down from N1,040 to between N935 and N965 per litre.
Depending on location, Nigerians pay between N935 and N1,100 per litre for petrol. The rise in crude oil prices will likely push fuel prices higher at the pumps. A further increase in petrol prices could significantly impact the cost of goods and services nationwide.
Inflation in Nigeria is already high. In November 2024, headline inflation reached 34.60%, and food inflation stood at 39.93%. Rising fuel prices will likely worsen inflation and increase Nigerians’ cost of living.
Experts warn that the situation could undermine economic stability. The government must monitor the situation closely to avoid further financial strain. As crude oil prices continue to fluctuate, Nigerians will likely face higher petrol prices shortly, leading to increased transportation costs and a rise in goods and services nationwide.