The fluctuating price of petrol in Nigeria has been a longstanding concern for both Nigerians and the global community. As one of the world’s largest producers and exporters of crude oil, Nigeria’s fuel prices are intricately tied to international market dynamics, influenced by factors such as demand and supply, global economic conditions, and organizations like the Organization of the Petroleum Exporting Countries (OPEC). This article delves into the reasons behind these price changes and provides an updated market price list for various petroleum products in Nigeria as of January 2023.
Factors Influencing Petrol Prices:
Petrol prices are subject to the forces of demand and supply on the international stage. When global demand surpasses supply, Nigerians often experience fuel scarcity, leading to increased prices. Conversely, when demand decreases, as seen in March 2021 due to the COVID-19 pandemic, the Nigerian government signaled a reduction in fuel prices. Additionally, international bodies like OPEC play a role in influencing oil prices globally.
Government Subsidy:
The Federal Government of Nigeria subsidizes the price of Premium Motor Spirit (PMS) to make it affordable for the average citizen. Despite the landing cost predicted to be over ₦1,000 per liter, the government continues to subsidize fuel. However, there are plans to remove this subsidy in the near future.
Petroleum Product Prices in Nigeria :
- Premium Motor Spirit (PMS): ₦163 per liter
- Diesel (AGO): ₦285 per liter
- Kerosene: ₦330 per liter
- Cooking Gas (LPG): ₦750 per kg
- Engine oil: Mobil = ₦2,500 per liter, Others = ₦1,500 – ₦1,900 per liter
- Acetylene gas: ₦1,000 per meter
- Oxygen welding gas: ₦250 per kg
Overview of Petroleum Products:
- Diesel Fuel (Automotive Gas Oil): A less volatile fuel designed for diesel engines, commonly used in heavy-duty vehicles and industrial machinery.
- Petrol Fuel: Differentiated by octane ratings (91, 95, and 98), it is crucial to choose the right type based on a vehicle’s engine specifications to avoid engine issues.
- Cooking Gas (LPG): A flammable gas used for heating purposes and as an alternative fuel for vehicles, stored in gas cylinders.
- Kerosene Fuel: A flammable liquid mainly used for heating and burning, experiencing a decline in usage due to the popularity of cooking gas.
- Engine Oil (Lubricant): Blended oils with additives to lubricate internal combustion engines, popular brands include Mobil, Castrol, Oando, and others.
- Oxyacetylene (Oxygen and Acetylene): A colorless and inflammable gas used for welding and cutting metal materials.
Conclusion:
Understanding the factors influencing petrol prices in Nigeria and the diverse range of petroleum products available is crucial for consumers. As the government considers removing fuel subsidies, staying informed about the market dynamics and choosing the right fuel type for vehicles becomes even more important. This comprehensive guide aims to provide clarity on petroleum products, their prices, and the broader landscape of the fuel industry in Nigeria.