Diesel, Kerosene, Petrol prices rise by 37 percent in March 2017

The average retail prices of the automotive gas oil (AGO), dual purpose kerosene (DPK) and premium motor spirit (PMS) increased by 37 percent by the end of March 2017 as against their retail prices in March 2016 analysis of the National Bureau of Statistics (NBS) data has shown.

Experts say the rising prices of the basic sources of energy for households and firms could explain the sustained rise in prices of goods and services in the country.

Fuel expenditure by households and industrial components of the economy represents 12.54 percent of the non-food expenditure and 4.33 percent of the total consumption expenditure based on the previous NBS studies.

Data from the NBS however shows the three essential products had different levels of price changes in one year. While AGO prices rose by 60.44 percent per litre, those of DPK and PMS increased by 39.5 percent and 10.1 percent respectively, BusinessDay Research and Intelligence (BRIU) analysis of the NBS data shows.

A litre of AGO, popularly known as the diesel, rose to N234.55 per litre in March this year, up from N146.19 per litre a year ago.
Nineteen states of the federation had their price increase more than the national average, with the most affected being Yobe state whose residents bought a litre of diesel at 220 per litre up from N110 per litre a year ago, translating to a 100 percent increase.

Anambra, Edo, Ondo and Osun complete the topmost states that recorded the highest increase in expenditure on diesel.

Diesel price per litre was N237.27 in Anambra in March this year, compared with N126 per litre litre a year ago, representing 88.31 percent rise.

The price of the product went up by 83.55 percent in Edo State to N248.85 a litre in March 2017 as against N135.50 per litre in corresponding period last year.

Ondo and Osun residents saw a litre of diesel rise by 83.57 percent and 82.78 percent than the price they got in March 2016. Specifically, AGO price rose to N254.38 per litre from N138.57 per litre in Ondo State, while in Osun it was N242.53 per litre in March 2017 compared with N132.69 per litre last year.

Year-on-year, Kerosene price per litre rose in 36 states of the federation with Zamfara state the only exception, where the price of the product fell by 33.90 percent.

Kwara, Kastsina, Lagos, Jigawa and Ondo States had the highest increase over corresponding period in 2016. Overall, 21 states recorded a price increase above the national average.

A litre of DPK in Kwara rose by 113.70 percent from N152.08 per litre in March 2016 to N325 per litre in March this year. It increased to N301.67 per litre in Katsina state from N158.93 per litre a year ago, representing 89.81 percent rise.

At N311.67 per litre in Lagos, residents in the nation’s commercial capital had their expenditure on DPK rise by 74.92 percent as against N178.17 per litre a year ago. The price of the product went up by 64.65 percent and 63.27 percent in Jigawa and Ondo states.  However in Zamfara, residents bought the peroduct at N271.57 per litre in March this year, as against N410.83 per litre same period in 2016.

The increase in PMS price per litre was highest in Borno State and least in Nassarawa State. Whereas it rose by 73.6 percent in Borno from N87 per litre in March 2016 to N151 per litre this year, the price of the product retreated by 12.5 percent in Nassarawa State from N166.7 per litre last year March to N145.9 per litre.

Industry analysts have attributed the increase to a number of factors prominent among, which is the fluctuation in the exchange rate of the  naira to the US dollar.

“The scarcity of foreign exchange was responsible for that as during the period most marketers sourced forex from the parallel market”, said a senior analyst with an oil and gas firm who did want to be named because he was not authorised to speak on the issue.
The exchange rate of the naira nosedived to N500 to the US$ at the parallel market before the Central Bank of Nigeria(CBN) introduced some flexibility which has shored up its value presently to about N410 to the US$.

 

 TELIAT SULE