In a dramatic turn of events, Nigerians are now paying twice the cost of kerosene within the year. This sharp increase has sent shockwaves through households and businesses alike, as kerosene is a staple for many in the country.
With prices doubling, the economic burden on the average Nigerian has intensified, prompting widespread concern and calls for action. This article sheds light on the factors contributing to this price hike and explores the broader implications for Nigerian society.
Nigerians are now Paying Twice the Cost of Kerosene
Nigerians are paying more for kerosene, a vital source of energy for cooking and heating water in many Nigerian households. According to the latest NBS report, the price of a gallon and a litre of kerosene increased month on month and year on year.
Certain states experienced a more significant jump in kerosene prices compared to what residents of some states paid. In January 2024, the average retail price per litre of Household Kerosene (HHK) paid by Nigerian consumers was N1,329.53, showing a 2.40% decline from the previous month but a 15.27% rise from January 2023.
Kaduna had the highest price per litre at N1,833.33, while Bayelsa had the lowest at N969.70. The average retail price per gallon of HHK was N4,870.83, representing a 7.53% rise from December 2023 and a 25.34% increase from January 2023.
Adamawa had the highest average retail price per gallon at N6,083.33, and Delta had the lowest at N4,000.00. In April 2024, the average retail price per litre of kerosene increased to N1,439.64, indicating a 6.29% increase from March 2024 and a 24.04% rise from April 2023.
Some poor households in Nigeria, especially in communities around major cities, rely on Kerosene stoves for cooking, and the increase in Kerosene prices has made it difficult for them to afford cooking gas due to their meagre salaries.
Data from the National Bureau of Statistics (NBS) has shown that Nigerians who make use of Kerosene now paying double the cost they paid for the commodity in 2023.
Prices per litre
According to the National Bureau of Statistics (NBS), Benue, Kaduna, and Plateau had the highest average prices of kerosene per litre at N1,788.47, N1,761.62, and N1,717.78 respectively.
Meanwhile, Katsina, Jigawa, and Kwara had the lowest average prices at N1,222.22, N1,240.74, and N1,252.38 respectively.
Also, the report highlighted the following prices per litre of Kerosene across all the zones in the country as follows; The North-Central had the highest average retail price of kerosene at N1,525.27 per litre, followed by the South-West at N1,479.24. The South-East had the lowest average price at N1,391.68 per litre.
In April 2024, the average retail price per gallon of kerosene was N5,174.23, representing a 5.61 per cent increase from the previous month and a 24.17 per cent increase from April 2023.
Prices per gallon
A study of retail prices In different states revealed that Kano had the highest average retail price for kerosene at N6,862.50, while Kwara had the lowest price at N4,226.40.
Adamawa and Yobe had the second and third-highest prices at N6,266.05 and N6,120.41, respectively, while Delta and Akwa Ibom had the second and third-lowest prices at N4,300.00 and N4,356.67, respectively.
The North-East region recorded the highest average price per gallon of kerosene at N5,922.63, followed by the North-West at N5,538.58. Meanwhile, the North-Central recorded the lowest average price per gallon of kerosene at N4,634.60.
South East recorded N4,256.77, Southwest recorded N4,151.74, and South-South recorded N3,168.51. according to the report by NBS.
According to current data, kerosene’s cost in Nigeria stood at approximately 1,354 Nigerian Naira (NGN) per liter, approximately 0.92 US dollars as of June 3, 2024, representing an increase in value compared to previous months.
Nigeria still struggles with inadequate local crude oil refining capabilities, resulting in increased costs for end-users due to global supply chain issues and local distribution challenges. Consequently, there is a possibility that the situation will further escalate.
The Takeaway
In conclusion, the fact that Nigerians are now paying twice the cost of kerosene within the year is a clear indicator of the pressing economic challenges facing the nation. This price surge has not only strained household budgets but also impacted small businesses and the overall economy.
As the government and stakeholders seek solutions, it is crucial to address the underlying issues to prevent further hardships. By understanding the causes and consequences of this price increase, we can better prepare for future economic shifts and work towards more sustainable energy solutions.
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