Cost of kerosene increases by 146%
Residential kerosene, also referred to as cooking kerosene, saw a price increase of approximately 100% in just one year.
The most current data from the Nigerian Bureau of Statistics (NBS) for November show that the average retail price of kerosene climbed by over 146% from N441 in November 2021 to N1,083/litre in the same month last year.
The information shows that, compared to the N1,041 recorded in October, the average retail price per liter in November 2022 grew by 4% on a monthly basis.
Akwa Ibom, Cross River, and Abuja—all with N1,367—had the highest average price per liter in November 2022, according to a state profile analysis. Borno, on the other hand, had the most affordable price at N87 6. Rivers and Nasarawa came next with N910 and N913, respectively.
The South-East had the highest average retail price per liter, at N1,209, followed by the South-West at N1,163, and the North at N1,097, according to zone-specific research. In November 2022, consumers paid an average retail price per gallon of N3,594, a 2% increase from N3,517 in October 2022.
From N1,544 in November 2021, it increased by 133% annually. According to assessments of state profiles, Kwara had the highest average retail price per gallon at N4,506, followed by Enugu and Abia. While Borno and Bauchi had the next-lowest prices at N2,500 and N2,767, respectively, Gombe had the lowest price at N2,430.
When the average retail price per gallon of household kerosene was broken down by zone, it was found that the South-East had the highest average price with N4124, followed by the North Central with N3,811, and the North-East had the lowest average price with N2998.
NBS reports that from N10,050 in October 2022 to N10,180 in November 2022, the average retail price for refilling a 12.5kg cylinder of liquefied petroleum gas grew by 1.3% on a monthly basis. It increased by 39% year over year from N7308.06 in November 2021.
According to a zone-by-zone analysis, the average retail price for refilling a 12.5kg cylinder in the South-West was N10,561, followed by the South-South with N10,495, while the North-East had the lowest price at N9,600. However, prices increased to roughly N11, 000 per 12.5kg in outlets run by independent marketers.
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Petrol prices jumped from about N165 per litre to N250 per litre at independent marketers’ stations, N180 per litre at big marketers’ outlets, and N169 per litre at NNPCL Retail stations due to scarcity that persisted until the holiday season.
Olumide Adeosun, the chairman of the Major Oil Marketers Association of Nigeria, had advised the federal government to implement phasal deregulation of the downstream sector in order to mitigate the negative effects of a sharp increase in fuel prices, particularly for the Premium Motor Spirit, also known as gasoline.
“Having subsidised PMS for so long, Nigerian institutions now have a diminished capacity to deal with the current local energy crisis. A disruption in any part of the supply chain causes ripple effects and results in queues at stations. As a country, we must begin the process of price deregulation to reduce this inefficient subsidy,” he said.
According to him, if the country wishes to implement a subsidy, it must be in areas targeted sectors such as agriculture and transportation, to reduce food price inflation and generate more jobs for Nigerians.
“In tandem, we must find a way to liberalise supply. We must bring transparency and competition into supply to ensure steadier, more efficient supply at optimum prices. Imported products must compete with locally refined products to find a meeting point between the need for local refining and competitively low but cost-recovered prices for Nigerians for sustainability.
“The exploration, production, refining of crude oil and the distribution of refined products is an international business with ebbs and flows and has specific models, guidelines, rules, and norms designed to protect and sustain consumers of this type of energy and populations impacted by its supply chain.
“The government and the industry in Nigeria must demonstrably apply this accepted health, safety, environmental protection, and quality norms to be seen to care for its local populations. To cut corners would be irresponsible, unaccountable, and unsustainable,” he said.