Kerosene Price Hits N800+ Per Litre As Nigerians Face Battles Recession

Table of Contents

Kerosene Price Hits N800+ Per Litre As Nigerians Face Battles Recession

Just when the market is starting to adjust to the recently raised petrol and gas prices, the cost of kerosene, which is utilized by many families, has climbed to N800 per litre.

According to a market study conducted by The PUNCH on Tuesday, one litre of cooking kerosene, which cost N700 last week, is now available for between N800 and N850 in metropolitan areas of Lagos State while reaching as high as N1000 per litre at filling stations in the suburbs.

ALSO, READ German Business Mood Affected As Recession Approaches

Currently, the cost of a litre of cooking kerosene in Ghana is GHS 12.044 (N585).

Kerosene, unlike gasoline, is a deregulated product, meaning that market forces determine its price.

Kerosene Price Hits N800 Per Litre As Nigerians Face Battles Recession

“It’s a deregulated market. It is also a function of the dollar to naira rate and the crude price at the international market. Since cooking kerosene is deregulated, prices can go up, it can also come down,” National Operations Controller, Independent Petroleum Marketers Association of Nigeria, IPMAN, Mike Osatuyi told The PUNCH.

ALSO, READ A Study On Why Many Nigerians Are Not Insured – Research

As of June, the Nigerian Bureau of Statistics, NBS, had reported an 88 per cent rise in prices of cooking kerosene and Liquefied Petroleum Gas within in one year.

According to the NBS report on “National Household Kerosene Price Watch,” the price of cooking kerosene went up by 86.94 per cent in one year.

The report also said that the average retail price per litre of household kerosene, HHK, paid by consumers in May 2022 increased by 15.21 per cent on a month-on-month basis from N589.82 in April 2022 to N679.54 in May 2022.

Kerosene Price Hits N800 Per Litre As Nigerians Face Battles Recession

According to the state profile analysis, Enugu had the highest average price per liter in May 2022 with N868.75, followed by Ebonyi and Imo with N861.11 and N801.67, respectively. Contrarily, Bayelsa reported the lowest price at N558.06, followed by Yobe at N601.39 and Nasarawa at N603.33.

ALSO, READ UK Car Insurance Premiums Increase By 6% As Industry Is Facing A “raft of challenges”: WTW

Additionally, the North-East reported the lowest average retail price per litre of home kerosene at N632.06, while the South-East reported the highest average retail price at N773.09, followed by the South-West at N738.19 and the North-Central at N668.78.

In an exclusive interview with our correspondent, energy expert Bala Zakka explained that Nigeria’s persistent failure to refine petroleum products for domestic consumption is to blame for the dramatic increase in the price of the items.

Executive Secretary, Depot and Petroleum Products Marketers’ Association of Nigeria, DAPPMAN, Olufemi Adewole, told The PUNCH in an interview that the reason behind the continuous rise in prices of cooking kerosene was the exchange rate.

Kerosene Price Hits N800 Per Litre As Nigerians Face Battles Recession

“Cooking kerosene is deregulated so prices depend on foreign exchange. A dollar is now N700 from N600 just last month, so prices will surely increase,” he said.

The Executive Secretary of the Major Oil Marketers Association of Nigeria, MOMAN, Clement Isong, could not be reached for his comment on the matter as at the time of filing this report.

AllInsuranceHUB is a blog for everyone who seeks an informative, educative, and knowledge-based online insurance and investment community. We share Biographies, Top-notch investment tips, finance news, insurance policy details and much more. You can read and share thoughts, ideas, and opinions on the finance market and get real-time updates from around the globe