Nigeria’s energy crisis continues as the cost of kerosene and diesel rises

The price of household kerosene and fuel increased by as much as 105.70 percent and 202.67 percent, respectively, between June 2021 and June 2022, as Nigeria’s energy crisis worsened.

According to Dr. Muda Yusuf, the founder of the Centre for the Promotion of Private Enterprise (CPPE), the situation has increased pressure on Nigerians, making the already high cost of living worse.

In its yesterday posted national price watch for household kerosene, diesel, and premium motor spirit (PMS), often known as gasoline, the National Bureau of Statistics indicated significant price rises for each of these fuels.

While the average retail price of household kerosene (HHK) paid by customers in June 2022 grew 105.70 percent year over year from N370.29 in June 2021 and 12.09 percent month over month from N679.54 in May 2022 to N761.69 in June 2022.

From a lower price of N242.43 per litre in the same month last year to a higher price of N733.78 per litre in June 2022, diesel prices grew by 202.67% on a year-over-year basis. On a month-over-month basis, an increase of 9.34% was observed, from an average of N671.08 in May to N733.78 in June.

According to NBS, the price of gasoline increased by 6.21 percent from N165.61 in June 2021 to N175.89 in June 2022. The average retail price also increased 1.63 percent month over month from N173.08 in May 2022 to the average retail price that customers paid in June 2022.

According to the state profile analysis, Ogun had the highest average price per litre of kerosene in June 2022, with N961.54, followed by Enugu and Ekiti with N961.11 and N926.47, respectively.

On the other hand, Jigawa had the lowest price at N625.00, followed by Rivers at N618.42 and Nasarawa at N618.06.

In terms of fuel, Kwara, Delta, and Katsina are the top three states with the highest average price of the commodity in June 2022. (N786.36).

The lowest prices were observed in Bauchi (N650.00), Yobe (N675.00), and Kogi (N678.00), according the NBS data.

Sokoto, Kaduna, and Adamawa were the three states with the highest average retail prices for Premium Motor Spirit (Petrol), with Sokoto coming in first with N195.55, N190.80, and N190.67, respectively.

The lowest average retail price for gasoline, however, was found in Benue, where it was N165. Benue was followed by Ogun and Kebbi, where it was N165.20 and N165.33, respectively.

High energy prices, according to Yusuf, are one of the main causes of inflation, and to provide relief from the surging energy prices, the government urgently has to suspend all taxes and levies on the importation of petroleum goods.

He claims that “purchasing power has been dramatically degraded, real earnings have been lowered, and as a result, the prevalence of poverty has gotten worse. Concerning consequences exist for SMEs. Increased unemployment and hunger are the main causes of societal unrest.

Subscribe to our newsletter for latest news and updates. You can disable anytime.