• Thursday, May 23, 2024
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12 states most hit as diesel, kerosene, LPG prices surge

Tax on diesel imports seen piling pressure on firms

The rise in the prices of diesel, kerosene, and Liquefied Petroleum Gas, also known as cooking gas, has hit residents of 12 states the most, an analysis of official data has shown.

The states that had the highest price hikes last month were Ekiti, Ebonyi, Imo, Lagos, Abia, Delta, Oyo, Niger, Rivers, Gombe, Kaduna, and Ondo.

The average retail price of Automotive Gas Oil (diesel) paid by consumers increased by 129.10 percent from N235.41 in March 2021 to N539.32 the value recorded in March 2022.

The average retail price increased from N311.98 in February 2022, indicating a rise of 72.87 percent when compared to the average retail price paid in March.

Ekiti, Lagos, Abia, Ebonyi, Oyo, and Delta were the states hardest hit as diesel prices averaged N672, N668, N645, N644, N632, and N632 respectively.

The price increase in diesel, which is a result of the Russia-Ukraine war combined with the government’s lack of price regulation, is putting pressure on the majority of Nigeria’s businesses.

The average retail price per litre of Household Kerosene (HHK) paid by consumers in March 2022 rose to N564.55 from N450.66 in February 2022, showing an increase of 25.27 percent on month-on-month analysis.

However, year-on-year comparison showed that the average price per litre increased by 56.26 percent from N361.29 in March 2021.

The highest average price per litre in March was recorded in Ebonyi (N700), followed by Kaduna (N687.50), Ekiti (N666.67), Imo (N656) and Ondo (N654).

The average price for refilling a 12.5kg cylinder of LPG increased to N7,617.71 in March 2022 from N7,447.79 in February, representing a 2.28 percent month-on-month increase.

The average price for refilling a 5kg cylinder of LPG increased to N3,778.30 in March 2022 from N3,708.58 in February 2022m showing an increase of 1.88 percent month-on-month.

However, on a year-on-year basis, the average retail price for cooking gas increased by 83.62 percent from N2,057.71 in March 2021.

The highest average price for refilling a 5kg cylinder of LPG was recorded in Ekiti (N4,200), followed by Niger (N4,163.33), Imo (N4,150), Gombe (N4,133) and Rivers (N4,105).