Fuel prices rise by over 50.39 per cent in one year

Prices of some petroleum products, especially Automotive Gas Oil (AGO) popularly called diesel, and household kerosene (HHK or kerosene) have increased by over 50.44 per cent and 39.50 per cent in the last one year, according to the National Bureau of Statistics (NBS).

Although, the agency’s data showed a slight decrease in the prices on month-on-month basis by 5.94 per cent and 11.59 per cent respectively, the commodities are still largely beyond the reach of the average income earners.

Giving analysis of diesel and kerosene prices for March, the NBS said the average price paid by consumers for diesel decreased by 5.94 per cent month-on-month from N249.38 in February to N234.55/litre in March, 2017.

In a year-on-year price analyses, NBS said diesel and kerosene increased by 50.44 and 39.50 per cent respectively.Generally, prices of the petroleum products have remained high due to the high cost of foreign exchange, which made many marketers to abandon importation, and leaving the Nigerian National Petroleum Corporation (NNPC) almost the sole importer of products.

National Bureau of Statistics (NBS) identified states with the highest average price of diesel as Kwara, N263.57/litre; Kogi N260, and Abuja N255. “States with the lowest average price of diesel were Bayelsa N205.56; Plateau N209.17; and Rivers N212.14.”

It stated that the average price per litre paid by consumers for kerosene decreased by 11.59 per cent month-on-month from N352.42 recorded in February to N311.56 in March 2017.

National Bureau of Statistics (NBS) listed states with the highest average price per litre of kerosene to include Taraba N347.22; Plateau N340.48; and Cross River N399.71.

While states with the lowest average price per litre of kerosene were Gombe N273.81; Zamfara N271.57; and Oyo N267.54.Similarly, average price per gallon paid by consumers for kerosene decreased by 14.15 per cent month-on-month from N1,366 in February to N1,172.78 in March 2017.

“States with the highest average price per gallon of kerosene were Kebbi, N1,376.92; Sokoto N1,350; and Borno 1,338.89. States with the lowest average price per litre of kerosene were Anambra N1,000.91; Oyo N996.67 and Ebonyi N967.86.”

With regard to Premium Motor Spirit (PMS) also known as petrol, NBS said the average price paid by consumers for petrol decreased by -0.3 per cent month-on-month to N149.4 in March from N149.8 a month earlier.

According to the Bureau, states with the highest average price of petrol were Yobe, N161.7; Bayelsa, N161.3 and Enugu, N154.5.  “States with the lowest average price petrol were Oyo, N145.7, Osun, Kwara, Kano, Gombe, Ekiti, Delta, and Abuja, N145, and Ogun N144.9.

Speaking on the Federal Government’s plans for the downstream sector, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, said plans are underway to improve the country’s domestic capacity for local petroleum products production.

This, he added, will entail the injection of private sector investments and expertise in revamping the existing refineries, and the implementation of modular refineries in the oil-producing region.

Kachikwu reiterated government’s determination to refurbish all the refineries in two years with private capital; license specialty based refineries, modular refineries and co-located refineries; and reduce importation by 60 per cent by end 2018, and position the nation for self-sufficiency by 2019.