According to data obtained from the National Bureau of Statistics (NBS), the average retail price per liter of kerosene paid by Nigerians increased by 163 percent between December and January of this year, despite Naira scarcity.
The NBS data shows that the average retail price rose by 163 percent to N1,153 in January from N437 in January last year. On a month-on-month basis, it increased by 4.42 percent from N1,153 in January.
On a year-on-year basis, the average retail price per litre of the product rose by 163 percent from N437 in January 2022.
Ever since the kerosene subsidy was removed in 2016, kerosene prices have always gone high and low.
Nigerians who still rely on kerosene to power their stoves are worst hit by the surging price of kerosene. Since the naira scarcity, getting kerosene has been an issue for many.
Alli Jumoke who is a resident of Majidun Ikorodu, told BusinessDay she gets kerosene for N950 per liter. Because of the naira scarcity and price increase on kerosene, Jumoke said, “Getting kerosene these days is like going to war.” Filling stations closed due to the fuel shortage.
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“When you eventually get to a petrol station that is open, they will tell you they don’t accept transfers or POS. “I will have to go and look for cash.”
“I use my stove to cook beans and mostly food that takes a long time. Even the kerosine is like gold ” Jumoke said
Ore Owolabi, corporate intelligence lead, GAS360, said the kerosene market is fully deregulated; hence, it is fully dependent on market forces.
“The cost of kerosene follows the exchange rate of the parallel market, which further increases the cost of kerosene, ”
Owolabi said, “Due to rising costs, some households have switched from clean cooking gas to kerosene. Likewise, some households will switch from kerosene to charcoal or firewood in this period.”
According to Owolabi, a price control mechanism will reduce the cost of kerosene (similar to the petrol subsidy). However, the Nigerian National Petroleum Company (NNPC) Limited does not import kerosene any more.
He added that the NNPC was not financially buoyant enough to take on the added cost of a kerosene subsidy. “However, it goes against the government’s Decade of the Gas plan.”
On state profile analysis, Anambra recorded the highest average retail price per gallon of Household Kerosene with N4,623, followed by Kwara with N4,600 and Ebonyi with N4,557.
Borno recorded the lowest price with N2,800, followed by Bayelsa and Gombe with N2,900and N2,925respectively.
Analysis by zone showed that the South-East recorded the highest average retail price per gallon of Household Kerosene with N4,497, followed by the North-Central with
N4,143, while the South-South recorded the lowest with N3,424.
