Kerosene price soars by 118%, fuels anxiety

myDelsu News Staff 2

280 3 minutes read

The price of household kerosene has increased by 118% in the last year, putting it out of reach for many low-income Nigerians.

The average retail price of kerosene in Nigeria increased by 118% year over year, from N434 per liter in September 2021 to N947 in September 2018, according to the Nigerian Bureau of Statistics’ National Household Kerosene report.

The data shows that in September 2022, customers spent an average of N947 per liter of HHK at retail, up 17% from the N809 seen in August of that year.

Specifically, the survey found that in September 2022, the average price per liter was N1,272 in Enugu, N1,264 in Ebonyi, and N1,186 in Cross River, based on data from a profile of each state.

Meanwhile, Rivers had the cheapest pricing at N686, followed by Bayelsa at N715 and Nasarawa at N735.

Comparing average retail prices by region revealed that the South-East had the highest at N1,128, the South-West the second highest at N1,068, and the North-West the lowest at N869.

Compared to the average retail price of N2,948 per gallon in August 2022, the price paid by customers in September 2022 was N3,236. From September of 2021 when it was N1,541, it has climbed by 110% in the intervening year.

According to data collected for state profiles, Abuja has the highest average retail price for a gallon of cooking kerosene at N4,200. This is followed by Abia at N4,078 and Enugu at N4,052.

The state of Borno, however, had the lowest average price at N2,500, followed by Zamfara at N2,555 and Delta at N2,577.

After breaking down retail prices by region, we found that the South-East had the highest average per-gallon price at N3,607, followed by the South-West at N3,468 and the North-East at N2,804.

One gallon of cooking kerosene cost N790 in July, up 3.68 percent from the N761.69 average in June.

Because the Nigerian National Petroleum Firm Limited, the country’s state-owned oil company, has lately stopped importing the commodity, independent sellers have been steadily raising the price.

More than 70% of Nigeria’s over 200 million people don’t have access to clean cooking fuels, according to Mele Kyari, group chief executive officer of NNPC Ltd. Additionally, the cost of cooking gas has risen dramatically.

National President of the Nigerian Association of Liquefied Petroleum Gas Marketers, said that annual gas consumption has plummeted dramatically to 800,000 metric tons from 1, 250 million MT around four months ago.

Since Nigeria has such a large population, it should eat at least six million MT annually, in his opinion.

In 2018, Nigeria’s consumption was at an estimated 800,000 metric tons. A few months ago, our annual output was 1,250 million MT.

When compared to other African nations like Morocco, Egypt, Algeria, Kenya, South Africa, and others, Nigeria’s population suggests it should use about six million metric tons (MT) per year. “But these nations now use more LPG than Nigeria, despite our big population.

Experts in finance and economics have urged the government to act to help ease the hardships people in Nigeria are experiencing.

Dr. Muda Yusuf, a former director general of the Lagos Chamber of Commerce and Industry, has suggested that the government has to step in and lower the prices of the goods immediately for the sake of the poor.

He warned that the dramatic rise in the cost of household essentials like kerosene would have a multiplicative effect on poverty levels. Kerosene for the home is not a luxury but a need. We already have to deal with excessive food inflation, and now the rising cost of the appliances we need to prepare our meals is adding insult to injury. Therefore, this is an extra cost for the typical Nigerian and the poor, and it will have a significant impact on poverty.

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