In only one year, the cost of residential kerosene, often known as cooking kerosene, increased by nearly 100%.
The average retail price of kerosene per litre increased by nearly 146% from N441 in November 2021 to N1,083/litre in the same month last year, according to the most recent statistics from the Nigerian Bureau of Statistics (NBS) for November.
According to the data, the average retail price per liter in November 2022 increased by 4% on a monthly basis compared to the N1,041 recorded in October.
According to a state profile analysis, Akwa Ibom had the highest average price per liter in November 2022, with N1,417, followed by Cross River and Abuja, both with N1,367. On the other side, Borno had the lowest price at N876. This was followed by Rivers at N910 and Nasarawa at N913.
Additionally, zone-specific study revealed that 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. While customers paid an average retail price per gallon of N3,594 in November 2022, a 2% rise from N3,517 in October 2022.
It climbed from N1,544 in November 2021 by 133% on an annual basis. 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.
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.
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.
