…As the average price of 12.5kg, LPG hits N16,500
By Cyril Ogar
The price of Premium Motor Spirit, PMS, commonly known as petrol, saw a notable increase in August, rising from N770.54 in July to N830.46, according to data from the National Bureau of Statistics,NBS.
The data revealed that a liter of petrol rose by 7.78% on a month-to-month basis following the admission of the Nigerian National Petroleum Corporation, NNPC, Limited of owing about $6 million debt in subsidy.
On a year-on-year basis, petrol prices rose by 32.51% from N626.70 within the same period last year to N830.46 this year.
This significant increase is coming on the heels of the recent revelation by NNPC’s admission that its ability to supply the nation’s fuel was threatened due to its unpaid financial obligations to oil traders.
In a statement by its spokesperson, Olufemi Soneye, NNPC said the following:
“NNPC Ltd. has acknowledged recent reports in national newspapers regarding the company’s significant debt to petrol suppliers. This financial strain has placed considerable pressure on the Company and threatens the sustainability of fuel supply”.
Notably, this admission by the national oil company led to widespread fuel scarcity in Lagos, Ogun States, Abuja, and other places in the same month, with the price of fuel hitting over N1,000 in some areas.
In addition, NNPC filling stations adjusted the price of its petrol from the official N612 to N850 to N890, depending on the location.
Data from NBS shows that August had the highest increase in petrol price in decades, with some States like Gombe and Bauchi selling as high as N935.71 and N925.00.
A breakdown of the data shows that the average retail price paid by consumers for Premium Motor Spirit (petrol) in August 2024 stood at N830.46, reflecting a 32.51% increase compared to the N626.70 recorded in August 2023. When compared to the previous month, July 2024, where the price was N770.54, petrol prices saw a 7.78% rise.
On a state-by-state analysis, Benue State recorded the highest average retail price for petrol at N941.24.
Following closely were Bauchi and Gombe States, with average prices of N935.71 and N925.00, respectively.
In contrast, Delta, Cross River, and Edo States had the lowest average retail prices for petrol, with Delta at N667.50, Cross River at N672.00, and Edo at N676.25.
Further analysis by zone shows that the North-East zone had the highest average retail price at N908.21, while the South-South zone recorded the lowest at N677.11.
The rise in petrol prices has far-reaching consequences for both consumers and businesses across Nigeria. As fuel costs surge, transportation expenses are expected to climb, which in turn will likely push up the prices of food items and other essentials, contributing to a projected higher inflation in September.
Given that road transport is the backbone of the Nigerian economy, a continued escalation in the price of petrol will put additional pressure on households and businesses alike, exacerbating an already challenging economic climate.
Additionally, the recent offtake of petrol from the Dangote Refinery by NNPC has sparked hope for some relief, potentially not in price but in addressing fuel scarcity.
However, industry experts remain divided on whether the Dangote Refinery will lead to a reduction in petrol prices in the short or long term, meaning consumers may have to brace for sustained high costs for the foreseeable future.
meanwhile, the Average price of 12.5kg of Liquefied Petroleum Gas (cooking gas) in the South-south geopolitical zone reached N16,524 in August according to data from the National Bureau of Statistics ,NBS.
The NBS Liquefied Petroleum Gas ,LPG, watch for August reveals that the average price of 12.5kg cooking gas in the country stood at N15,552. This represents a monthly increase of 9.05% from N14,261.57 in July 2024.
When compared on a year-on-year basis, the average price of LPG across the country has risen by 69.15% from N9,194.41 in August 2023 to the current figure.
The South-South region recorded the highest price of 12.5kg cooking gas across the country at N16,500 followed by the South-East with N16,495.78. The average price of 12.5kg cooking gas across other regions are; South-west- N15,609, North-west- N15,330, North-east- N14,912, North-central- N14,767
In a state profile analysis, Rivers recorded the highest average retail price for refilling a 12.5kg cylinder of Liquefied Petroleum Gas (cooking gas) at N17,086.36, followed by Cross River at N17,050.00 and Abia at N17,012.52.
On the other hand, Bauchi had the lowest average price at N13,425.00, with Nasarawa and Adamawa States following at N13,640.94 and N13,725.00, respectively.
The average retail price for refilling a 5kg cylinder of Liquefied Petroleum Gas (cooking gas) rose by 7.62% month-on-month, from N5,974.55 in July 2024 to N6,430.02 in August 2024. Year-on-year, the price saw a 56.25% increase from N4,115.32 in August 2023.
Across geopolitical zone, the South-east recorded the highest price of 5kg cooking gas in August 2024 at N6,585.18 followed by the South-south region where the average price stood at N6,451.34. The prices across the other four geo-political zone are; North-west- N6,420, North-east- N6,413, South-west- N6,406, North-central- N6,344
In the state profile analysis, Benue and Sokoto recorded the highest average price for refilling a 5kg cylinder of Liquefied Petroleum Gas (cooking gas) at N7,000.00, followed by Rivers at N6,954.55 and Borno at N6,914.29. However, the lowest price was recorded in Taraba at N5,600.67, with Abuja and Kogi following at N5,825.00 and N5,857.56, respectively.
The increase in the average price of 5kg cooking gas in August comes after a significant drop in two consecutive months leading up to August- June and July. In June, the average price of 5kg cooking gas fell from N7,418 to N6,966.
Also, prices fell further in July from N6,966 in June to N5,974 in July mirroring fluctuations that have characterised the market in the past months.
