The recent spike in crude oil prices, particularly Brent crude, which just hit $81.09 per barrel, up from about $76 last week, may result in higher prices for gasoline and other refined petroleum products in the days ahead.

Nigeria, where the benchmark oil price was set at $75 per barrel in the 2025 budget proposal, may be greatly impacted by this hike.

Geopolitical conflicts, such as bans on Russian oil shipments, are blamed for the increase in petroleum prices because they have raised supply concerns.

According to market sources, this development may soon be reflected in Nigeria’s ex-depot pricing of refined fuels. Diesel (automotive gas oil) prices at Lagos depots have already increased by at least ₦70 as of Friday, from ₦1,050 to ₦1,120 per liter.

Information from the Biggest Oil Marketers According to the Association of Nigeria (MOMAN), the landing cost of gasoline was ₦887.51 per liter as of December 19, 2024.

Pump prices could rise as a result of the increased landing costs brought on by the increase in crude oil prices.

Since the Nigerian National Petroleum Company Limited and the Dangote Refinery announced lower ex-depot pricing last year, gasoline prices have slightly decreased in recent weeks.

Retail petrol prices dropped from ₦1,040 per litre to ₦935 to ₦965 per litre as a result of this modification.

Nevertheless, current prices across the country range from ₦935 to ₦1,100 per liter.

Since rising fuel prices frequently result in higher pricing for products and services, an increase in the price of gasoline could exacerbate inflationary pressures.

Nigeria’s headline and food inflation rates for November 2024 are 34.60% and 39.93%, respectively.