The price of household Kerosene, also known as cooking kerosene skyrocketed by over 100 per cent in one year.
Latest data from the Nigerian Bureau of Statistics for
November, showed average retail price of kerosene per litre rose by about 146
per cent from N441 in November 2021 to N1,083/litre in the corresponding period
last year.
The report indicated that average retail price per
litre was 4 per cent higher on a
month-on-month basis in November 2022 compared to N1,041 recorded in October.
On state profile analysis, the highest average price per
litre in November 2022 was recorded in Akwa Ibom with N1,417 followed by Cross
River with N1,367, and Abuja with N1,307.
On the other hand, the lowest price was recorded in Borno
with N876 followed by Rivers with N910 and Nasarawa with N913.
In addition, analysis by zone showed that the South-East
recorded the highest average retail price per litre, with N1,209, followed by
the South-West with N1,163, while the
North-East recorded the lowest with N959.
While the average retail price per gallon paid by consumers
in November 2022 was N3,594, showing an increase of 2 per cent from N3,517 in
October 2022.
On a year-on-year basis, it increased by 133 per cent from
N1,544 in November 2021.
On state profile analyses, Kwara recorded the highest
average retail price per gallon with N4,506 followed by Enugu with N4,302, and
Abia with N4,238.
On the other hand, Gombe recorded the lowest price with
N2,430, followed by Borno and Bauchi with N2,500 and N2,767 respectively.
Analysis by zone showed that the South-East recorded the
highest average retail price per gallon of Household Kerosene with N4124
followed by the North Central with N3,811, while the North-East recorded the
lowest with N2998.
The increasing price
also affected cooking gas and diesel.
According to NBS, average retail price for refilling a
12.5kg cylinder of Liquefied Petroleum Gas increased by 1.3 per cent on a
month-on-month basis from N10,050 in October 2022 to N10,180 in November 2022.
On a year-on-year basis, it rose by 39 per cent from N7308.06 in November 2021.
Analysis by zone showed that the South-West recorded the
highest average retail price for refilling a 12.5kg cylinder with N10,561,
followed by the South-South with N10,495, while the North-East recorded the
lowest price with N9,600.
Prices, however, rose to about N11, 000 per 12.5kg at
independent marketers’ outlets.
Due to scarcity which lingered into the festive period,
prices of petrol increased from around N165/litre to currently selling at
N250/litre at independent marketers’ stations, N180/litre at major marketer’s
outlets, and N169/litre at stations belonging to NNPCL Retail.
Diesel was sold for N808/litre, according to NBS.
The Bureau will release statistics for December in January
2023.
Just like diesel, the household kerosene has been
deregulated by the Federal Government.
Marketers have consistently called for deregulation of the
downstream sector.
Chairman, Major Oil Marketers Association of Nigeria,
Olumide Adeosun, had advised the Federal Government to implement a phasal
deregulation of the downstream sector to cushion the adverse effects of a sharp
rise in the prices of fuel, especially the Premium Motor Spirit also known as
petrol.
“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.