Fuel Subsidy: Kerosene Price Reduces by 3% in December 2020

The average price per gallon of kerosene paid by consumers, fell by -3.06% year-on-year (YoY) to N1,175.59 in December 2020.

According to a report by The Nigerian Demographic Health Survey (DHS) in 2013, 26% of the population used kerosene for cooking. This population is made up of 48% and 9% of urban and rural households respectively.

Initially, Kerosene was one of the major fuel used for cooking in various households before gas took over.

It was used widely by Nigerians because of the subsidy placed on it by the government, as well as, some energy sector influences which increased the affordability and availability of kerosene for a while.

Sadly, Kerosene subsidy was removed in 2016 leading to a near doubling of the pump price of kerosene and scarcity of the product.

Many independent marketers could no longer afford to import the product and most kerosene users bought the product at about four times the government regulated price.

However, as disclosed in a report by the National Bureau of Statistics, NBS, titled ‘National Household Kerosene Price Watch’, the average price per litre paid by consumers on Kerosene decreased by -0.17% month-on-month and increased by 10.05% year-on-year to N352.79 in December 2020 from N353.38 in November 2020.

The States with the highest average price per litre of kerosene were Benue (N436.81), Ebonyi (N425.83) and Taraba (N423.33).

States with the lowest average price per litre of kerosene were Bayelsa (N235.95), Rivers (N302.04) and Delta (N307.69).

Similarly, average price per gallon paid by consumers for National Household Kerosene decreased by -3.52% month-on-month and by -3.06% year-on-year to N1,175.59 in December 2020 from N1,218.50 in November 2020.

States with the highest average price per gallon of kerosene were Kebbi (N1,534.21), Nasarawa (N1,488.00) and Benue (N1,450.00).

States with the lowest average price per gallon of kerosene were Sokoto (N733.33), Bayelsa (N773.75) and Adamawa (N822.00).