As we navigate through the dynamic economic landscape of August 2023, one pressing concern for consumers and businesses alike is the continuous fluctuations in the prices of essential fuels and cooking gas.
In this blog post, we’ll delve into the details of the average retail prices of Premium Motor Spirit (PMS) commonly called petrol, Automotive Gas Oil (Diesel), Household Kerosene (HHK), and Liquefied Petroleum Gas (LPG) in various regions of Nigeria during August 2023.
Premium Motor Spirit (Petrol)
According to the data released by NBS, the average retail price paid by consumers for Premium Motor Spirit (Petrol) in August 2023 was N626.70. This represents a noticeable 4.39% increase from the month of July, which had an average price of N600.35.
This hike in petrol prices had a significant impact on the budgets of individuals and businesses across the country. The price-performance in the North-East Zone had the highest average retail price of N636.93. South South Zone had the lowest price of N616.95.
The disparity in petrol prices among regions highlights the need for a deeper investigation into the factors influencing these variations, such as transportation costs, taxes, and local demand.
The PMS market, which was fully deregulated with a bit of tactical cushioning by the Nigerian government through NNPC Limited , will trend higher in the months to come. With the global price of crude averaging about $90 per barrel, and decline in exchange rate Naira to dollar, the trends in price of PMS will continue to push in the wrong direction. This will continue to impact businesses and households.
Automotive Gas Oil (Diesel)
In August 2023, consumers faced an increase in the average retail price of Automotive Gas Oil (Diesel). Prices rose by 7.53%, climbing from N794.48 in July to an average of N854.32 in August. This has been a deregulated market driven by market forces.
This uptick in diesel prices can have cascading effects on transportation costs, affecting the prices of goods and services. The price-performance in North Central had the highest average retail price of N907.86.
South South Zone had the lowest price of N820.02 which may not be unconnected with the significant amount of illegally refined product that’s readily available in the region. No one can authoritatively provide accurate data on the amount of legal vs illegal AGO sold in Nigeria.
The regional disparities in diesel prices may necessitate a closer look at distribution networks, supply chains, and regional economic dynamics.
Household Kerosene (HHK)
Based on the data released by the Nigerian Bureau of Statistics, Household Kerosene (HHK) also experienced price fluctuations in August 2023, with an average retail price of N1,260.81 per litre. Analysis by zone revealed varying prices, with the North-East recording the highest average price of N1,355.37, the South-East at N1,337.17, and the North-West at the lowest with N1,108.28.
The reasons behind these regional differences in HHK prices could involve transportation costs, distribution challenges, and local demand patterns. Understanding these factors is crucial for policymakers and consumers alike.
Liquefied Petroleum Gas (LPG) 5kg Cylinder
For those relying on Liquefied Petroleum Gas (LPG) for cooking, the average retail price for refilling a 5kg cylinder in August 2023 was N4,072.87.
The regional analysis revealed disparities in prices, with the North-Central recording the highest average price of N4,425.56, the North-West at N4,265.97, and the South-West at the lowest with N3,711.22. With Nigeria flaring about 300 million standard cubic feet of gas daily, one would imagine the domestic LPG production to be much higher.
The fluctuations in LPG prices underscore the importance of understanding supply chain dynamics and regional variations in demand for this essential cooking fuel.
The August 2023 fuel and cooking gas price trends have undoubtedly raised concerns among consumers and businesses. It’s important to remember that these fluctuations are not permanent, but it’s also important to be prepared. By staying informed and adapting your strategies, you can minimize the impact of these price fluctuations on your budget and lifestyle.
This piece was written by Esther Idowu. Esther is a Data Analytics specialist at WaterHouse Analytics Limited.
