In the ever-evolving landscape of economic indicators and consumer trends, it is crucial to stay informed about changes that affect our daily lives. One such change that has recently garnered attention is the significant increase in kerosene prices during August 2023, as reported by the National Bureau of Statistics (NBS). In this comprehensive article, we delve into the details of this price surge, its implications, and the regional variations that have unfolded.
The National Bureau of Statistics (NBS) Report
The National Bureau of Statistics (NBS) has recently published its findings on the price fluctuations of household kerosene for the month of August 2023. The data reveals that consumers across Nigeria felt the impact of rising kerosene prices, with the average price per litre reaching N1,272.40, compared to N1,260.81 recorded in July 2023. This increase might seem modest at first glance, reflecting a 0.92% rise month-on-month. However, when we turn our attention to the year-on-year statistics, the situation becomes more concerning, as the average retail price per litre of kerosene soared by a staggering 57.18% from N809.52 in August 2022.
Regional Disparities in Kerosene Prices
To gain a more granular perspective on this price surge, let’s examine the states that paid the highest and lowest prices per litre for household kerosene in August 2023, as reported by NBS.
Highest Prices Per Litre
- Adamawa: Topping the list, Adamawa recorded the highest average price per litre at a staggering N1,745.83.
- Benue: Following closely, Benue residents paid an average of N1,468.33 per litre.
- Abuja (Federal Capital Territory): The nation’s capital ranked third, with an average price of N1,486.89 per litre.
Lowest Prices Per Litre
- Jigawa: Jigawa residents enjoyed the lowest prices per litre at a more affordable N1,000.00.
- Edo: Edo State followed with an average price of N1,104.78 per litre.
- Kaduna: Residents in Kaduna paid an average of N1,121.79 per litre.
These disparities in regional pricing highlight the diverse economic conditions and market dynamics across different states in Nigeria.
Zonal Analysis of Kerosene Prices
The NBS report also offers insights into the regional trends of household kerosene prices based on geographical zones. Here’s a breakdown of the findings:
The North-Eastern region experienced the most substantial impact of the price surge, with an average retail price per litre of household kerosene standing at N1,370.64. This region bore the brunt of the increase.
Following closely, the South-East recorded an average price per litre of N1,332.49, reflecting the widespread influence of rising kerosene costs.
In contrast, the North-Western region recorded the lowest average retail price per litre of household kerosene at N1,163.25. This region fared relatively better in terms of price increases.
Kerosene Prices Per Gallon
For those who purchase kerosene in larger quantities, such as by the gallon, the NBS report provides insights into these price fluctuations as well. Here’s a breakdown of the findings:
Average Price Per Gallon
In August 2023, the average retail price per gallon of household kerosene reached N4,351.53, marking a 1.06% increase from N4,306.07 in July 2023. On a year-on-year basis, this represents a substantial surge of 47.63% from N2,947.65 in August 2022.
State Profile Analysis
Let’s take a closer look at the states with the highest and lowest average prices per gallon:
Highest Prices Per Gallon
- Lagos: Lagos State recorded the highest average retail price per gallon of household kerosene at N5,350.83.
- Katsina: Katsina followed closely, with residents paying an average of N4,991.85 per gallon.
- Borno: Borno residents also faced higher prices, with an average of N4,897.47 per gallon.
Lowest Prices Per Gallon
- Delta: Delta State recorded the lowest price per gallon at a more affordable N2,945.71.
- Rivers: Rivers State followed with an average price of N3,287.50 per gallon.
- Oyo: Oyo State residents paid an average of N3,711.79 per gallon.
Zonal Analysis of Gallon Prices
Just as with the per litre prices, there were regional variations in the average price per gallon of household kerosene:
The North-East region recorded the highest average retail price per gallon of household kerosene at N4,637.71.
Following closely, the South-East recorded an average price per gallon of N4,590.69.
The South-South region recorded the lowest average retail price per gallon of household kerosene at N3,727.30.
Implications of Rising Kerosene Prices
The surge in kerosene prices has wide-ranging implications for households and businesses across Nigeria. As a crucial source of energy for many, especially in regions without reliable access to electricity, kerosene plays a vital role in daily life. The steep increase in prices can strain household budgets, impacting the overall cost of living.
In conclusion, the NBS report for August 2023 paints a stark picture of the rising kerosene prices in Nigeria. With a significant year-on-year increase of 57.18%, this surge affects households and businesses alike. Regional disparities further emphasize the need for targeted policies and solutions to address the challenges posed by these price fluctuations. Stay informed and stay prepared as we navigate these economic changes together.