Subsidy Removal: Average Petrol Pump Price Rose 210% YoY in June as Impact Bites Harder

Emmanuel Addeh in Abuja

As Nigerians continue to face the hardship occasioned by the withdrawal of the subsidy hitherto paid by the government, the average retail price expended by consumers for Premium Motor Spirit (PMS) in June 2023 rose to N545.83, indicating an increase of 210.31 per cent relative to N175.89 recorded in June 2022.

Latest data from the National Bureau of Statistics (NBS) also indicated that comparing the average price value with the previous month of May 2023, the average retail price increased by 129.23 per cent from N238.11.

However, THISDAY checks showed that the average price year-on-year (YoY)is likely to soar even higher when the figures for July roll in, as the pump price has now risen by at least 15 per cent and a 65-litre fuel tank now takes over N40,000 to fill.

On May 29, President Bola Tinubu announced the removal of fuel subsidy, effectively leaving the price the product sells to the forces of demand and supply. The Nigerian National Petroleum Company Limited (NNPC) has assured that prices will continue to fluctuate in accordance with in-built costs.

A country of over 200 million people, Nigeria imports almost all its petrol consumption needs, since its badly maintained four refineries in Port Harcourt, Warri and Kaduna packed up.

But on state profile analysis, the NBS data showed that Taraba state had the highest average retail price for petrol with N562.86, followed by Yobe with N562.31 and Kano with N561.82.

On the other hand, Anambra it said, recorded the lowest average retail price for the product with N534.44, followed by Ebonyi with N535.00 and Oyo with N537.43.

 In addition, analysis by zone showed that the North-east recorded the highest average retail price in June 2023 with N557.03, while the South-west had the lowest with N539.36.

The difference in prices across the zones, THISDAY learnt, is mainly due to transportation costs. In addition, since the pipelines network meant to take the product around the country has collapsed, marketers depend on expensive diesel to move petrol in tankers along Nigeria’s dilapidated roads.

Aside the numerous taxes and levies faced by marketers, they also build in the cost of extortion by security agencies while moving the product from one part of the country to another.

But it appeared to be cheering news on the other hand, as the NBS data indicated that the average retail price for refilling a 5kg Cylinder of Liquefied Petroleum Gas (LPG) or cooking gas decreased by 6.71 per cent on a month-on-month basis from N4,360.69 recorded in May 2023 to N4,068.26 in June 2023. On a year-on-year basis, this decreased by 3.56 per cent from N4,218.38 in June 2022.

On state profile analysis, Kwara recorded the highest average price for refilling a 5kg cooking gas with N4,750.00, followed by Niger with N4,691.16, and Zamfara with N4,683.33.

Besides, Ondo recorded the lowest price with N3,287.86, followed by Ekiti and Nasarawa with N3,288.46 and N3,364.62 respectively.

 In addition, analysis by zone showed that the North-central recorded the highest average retail price for refilling a 5kg cooking gas, with N4,421.97, followed by the North-west with N4,260.30, while the South-west recorded the lowest with N3,709.16.

 Meanwhile, the average retail price of Automotive Gas Oil or diesel paid by consumers in June 2023 was N815.83 per litre, an increase of 11.18 per cent from N733.78 per litre recorded in the corresponding month of the previous year.

On a month-on-month basis, this decreased by 3.37 per cent from N844.28 per litre reported in May 2023. But on state profile analysis, the highest average price of the product in June 2023 was recorded in Taraba with N899.23, followed by Adamawa with N875.67, and Niger with N873.33.

On the other hand, the lowest price was recorded in Bayelsa with N733.20, followed by Imo with N742.71 and Kebbi with N746.00. Furthermore, analysis by zone showed that the North-central had the highest price with N856.97, while the South-east recorded the lowest price with N776.69.

 But Nigeria’s poor and vulnerable continued to be on the receiving end during the month under consideration, as average retail price per litre of kerosene paid by consumers in June 2023 was N1,236.10, indicating an increase of 2.49 per cent compared to N1,206.05 recorded in May 2023.

On a year-on-year basis, the average retail price per litre of the product rose by 62.28 per cent from N761.69 in June 2022. On state profile analysis, the highest average price per litre in June 2023 was recorded in Adamawa with N1,691.81, followed by Abuja with N1,461.11 and Abia with N1,396.67, the NBS stated.

On the other hand, the lowest price was recorded in Jigawa with N960.45, followed by Edo with N979.31 and Kaduna with N1,001.22. In addition, analysis by zone showed that the South-east recorded the highest average retail price per litre of kerosene with N1,351.56, followed by the North-east with N1,341.09, while the North-west recorded the lowest with N1,056.74.

Also, the average retail price per gallon of kerosene paid by consumers in June 2023 was N4,269.13, showing an increase of 1.45 per cent from N4,208.27 in May 2023 while on a year-on-year basis, this increased by 59.71 per cent from N2,673.04 in June 2022.