Business

Consumers groan as kerosene price spikes 12% in June

Kerosene users

Cash-strapped consumers are facing tough times as the average retail price per litre of Kerosene, a major commodity used for cooking spiked by 12 percent in June.

On a month-on-month basis, it rose by 12 percent to N761.7 in June 2022 from 679.54 in May, according to National Bureau of Statistics (NBS).

It also rose on a year-on-year basis, by 105.7 percent from N370.3 in June 2021 to N761. 7 in June 2022. For a gallon of kerosene, consumers paid N2,673.0 in June which is an increase of 13.4 percent to N2,358.3 in the previous month, while on a year-on-year basis, this increased by 112.9 percent from N1,255.2 in June 2021.

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According to energy experts, the spike is attributed to the dollar fluctuations, the Russia/Ukraine war and Nigeria’s inability to exploit its huge gas reserve

“Our local manufacturing capacity for both cooking gas and kerosene is very limited,” said Chinedu Onyegbula, an energy sector expert and director, Bullox Resources Limited, said.

“These products from the oil and gas refining process are not being subsidised, hence, dollar fluctuations, the Russia/Ukraine war, Nigeria’s inability to exploit its huge gas reserve and the fact that distribution and transportation cost locally is not cheap are affecting the price,” Onyegbula said.

Ore Owolabi, an energy expert noted that kerosene currently has no subsidy since it was removed in 2016 and that the price rises and falls with the international market.

“The kerosene subsidy removal is actually a boost for Liquified Petroleum Gas (LPG) adoption. And with the FGN working towards increasing LPG adoption, it would not want to subsidize the price of a competing, & more harmful product.”

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The NBS report also highlighted that the highest average price per litre in June 2022 was recorded in Ogun with N961.5, followed by Enugu with N961.1 and Ekiti with N926.5.

On the other hand, the lowest price was recorded in Nasarawa with N618.1, followed by Rivers with N618.4 and Jigawa with N625.0.

In addition, Southwest recorded the highest average retail price per litre of Household Kerosene with N878.1, followed by Southeast with N 846.6 and Northeast with N750.4, while the South-South recorded the lowest with N687.8.

Ayomide Sunday, a consumer residing in Akesan, Lagos said that he recently bought Kerosene at N700 per litre at Swift petrol station in that same area.

“I don’t usually buy Kerosene, but I had to buy it for cooking when I was using the stove for a period of time.”

Happiness Igboke, federal civil servant based in Anambra described the price hike as unbearable and very frustrating.

“The last time I bought kerosene, the price was N580 per litre. How can one cook in this country? How to feed is a challenge and the high cost of kerosene has compounded it,” She complained.

She also added that the situation has made her family resort to alternatives. “In fact, cooking with firewood is even better.”