Kerosene, cooking gas prices rise for 3 consecutive months …marketers finger importers, VAT on imported LPG
The average prices at which Nigerians reportedly bought kerosene and cooking gas rose in May, 2018 from what was recorded in the previous month.
Two separate reports on kerosene and cooking gas prices released yesterday by the National Bureau of Statistics (NBS) showed that the month of May marked three consecutive months of reported increases in prices of kerosene and cooking gas.
The NBS report analysed by Daily Trust showed that Nigerians reportedly bought a gallon of kerosene for N983.67 in May, up from N975.82 recorded in April and even higher than N943.27 recorded in March.
The report shows that average price per litre paid by consumers for National Household Kerosene increased in May 2018 from N278.49 in April 2018.
States with the highest average price per litre of kerosene were Abuja, N327.50; Yobe, N313.33; and Cross River, N310.19.
States with the lowest average price per litre of kerosene were Borno (N233.33), Abia (N235.53) and Kogi (N251.04).
Similarly, average price per gallon paid by consumers for National Household Kerosene increased by 0.80 per cent month-on-month and decreased in May 2018 from N975.82 in April 2018.
States with the highest average price per gallon of kerosene were Jigawa (N1143.33), Yobe (N1130.00) and Adamawa (N1088.89).
States with the lowest average price per litre of kerosene were Oyo (N907.66), Delta (N884.62) and Rivers (N834.09).
Findings showed that imports of kerosene by the Nigeria National Petroleum Corporation (NNPC) have been fluctuating since it discontinued kerosene importation under its Direct-Sale Direct-Purchase import system in 2016.
About 60 per cent kerosene consumed in the country have come mostly from the three refineries which have also struggled to work up to 50 per cent of their installed capacity.
Meanwhile, the average price of cooking gas as bought by Nigerians has been on the rise in the last three months, from N4253.73 recorded in March to N4268.95 recorded in April and the recent N4298.72 reported in May.
The report revealed average price for the that the refilling of a 5kg cylinder for Liquefied Petroleum Gas (cooking gas) increased by +0.68 per cent monthon-month and decreased by -15.30 per cent year-on-year to N2,072.24 in May 2018 from N2,058.19 in April 2018.
States with the highest average price for the refilling of a 5kg cylinder for Liquefied Petroleum Gas (cooking gas) were Bauchi (N2,500.00), Gombe (N2,500.00), and Borno (N2,428.57). States with the lowest average price for the refilling of a 5kg cylinder for Liquefied Petroleum Gas (cooking gas) were Kaduna (N1,687.50), Ebonyi (N1,690.00) and Ekiti (N1,795.00).
Similarly, average price for the refilling of a 12.5kg cylinder for Liquefied Petroleum Gas (cooking gas) increased by 0.70 per cent month-on-month and decreased by -13.30 per cent year-on-year to N4,298.72 in May 2018 from to N4,268.95 in April 2018.
States with the highest average price for the refilling of a 12.5kg cylinder for Liquefied Petroleum Gas (cooking gas) were Benue (N5,150.00), Kaduna (N4,935.00) and Cross River (N4,687.50). States with the lowest average price for the refilling of a 12.5kg cylinder for Liquefied Petroleum Gas (cooking gas) were Oyo (N3,940.38), Ogun (N3,866.67) and Lagos (N3,683.33).
The President of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), Mr. Nosa Ogieva-Okunbo, attributed the surge in the price of Liquefied Petroleum Gas (LPG) otherwise called cooking gas to a recent increase in price by off takers.
Okunbo told Daily Trust that a 20 metric tonnes of cooking gas now sells for N4.6m as against about N4m weeks ago.
He blamed the activities of a group of players he said wants to monopolise the industry and maximise profits.
“It is this importers that at every single opportunity they start varying the price in the market,” he said
According to Okunbo, “VAT to some extent was responsible (for the increase), that is what the off takers are claiming but we as marketers are appealing to the federal government to look into this issue.”
He said while VAT is not imposed on imported LPG, locally sourced LPG from the Nigeria Liquefied Natural Gas (NLNG) company is not spared of VAT thereby making it costly for end users.