The average price per litre of Kerosene in Nigeria increased to N316.26 in April 2019, compared to N303.94 recorded in March. This indicates that the Average price per litre paid by consumers for National Household Kerosene increased by 4.06 percent month on month and 13.57 percent year-on-year.
According to the latest National Bureau of Statistics’ (NBS) Price watch report, the price of automotive gas oil (diesel) inched up to N230.67 in April, up from N229.16 in March.
However, the average price for refilling a 5kg cylinder for Liquefied Petroleum Gas (Cooking Gas) decreased to N2,046.53 in April; down from N2,064.45 recorded in March. Essentially, average prices of cooking Gas decreased by -0.87 percent
month-on-month and -0.57 percent year-on-year
Price variations across States – In the month of April, States with the highest average price per litre of kerosene were: Plateau (N361.90), Anambra (N353.47), and Enugu (N353.33). However, consumers in Gombe (N269.04), Lagos (N272.02), and Nassarawa (N287.45) states paid the lowest average price per litre of kerosene.
Similarly, States with the highest average price per gallon of kerosene were Gombe (N1,361.54), Enugu (N1,322.73) & Jigawa (N1,321.43). However, Bayelsa (N1,031.67), Akwa Ibom (N1,071.36) and Delta (N1,071.36) recorded the lowest average price per gallon of kerosene.
On the other hand, States with the highest average price of diesel were: Borno (N249.50), Osun (N245.55) and Niger (N241.90), while Ekiti (N204.40), Rivers (N218.00), and Plateau States (N219.11) recorded the lowest average price of diesel.
Lastly, Cooking gas Consumers in Bauchi (N2,513.33), Adamawa (N2,375.00) and Borno States (N2,362.50) paid the highest average price for refilling a 5kg cylinder for Cooking Gas. However, Consumers in Osun (N1,766.66), Oyo (N1,790.38), and Kaduna (N1,800.00) paid the lowest average price for the refilling of a 5kg cylinder for Cooking Gas.
Prices across zones – The average price for refilling 5kg of cooking gas was highest in North East Zone (N2305.27). Followed by South-South (N2174.39), South East (N2023.44), North West (N1979.86), North Central (N1977.17) and South West (N1837.89).
Also, South East Zone maintains the highest average price of Kerosene at N337.60 per litre, South West (N321.66), South-South (N317.46), North West (N311.34), North Central (N310.46) and North East (N304.42).
Lastly, consumers in the South East Zone paid the highest average price of N237.65 per litre of Diesel. Followed by North East (N236.68), South West (N229.92), North Central (N228.00), North West (N227.89) and SouthSouth (N225.95).
Upshots: Analysis of the report shows that average prices of Kerosene and Diesel increased for the month of April. This suggests that consumers had to pay more than they spent in the previous month, and this will reduce the purchasing powers, thereby reducing sales and revenue of companies supplying these products for the period under review
Similarly, as the power sector is still a bane of both industries and household, economic agents in Nigeria still find themselves demanding a high quantity of diesel for use. Hence, the rise in the price of diesel would further heap more pressure on the finances of companies, which may force the companies to transfer the cost in the form of a price increase on certain goods. For the household, it implies a fall in the purchasing power.
Lastly, the fall in average prices for refilling Cooking gas dropped and implies that small business owners and household would have a sense of relief. At least, in the meantime, this will aid small business in terms of downsizing cost of production and thereby boosting profit.