Kerosene subsidy: Marketers may sell above N200/l

03 February 2015, Lagos – Following the removal of subsidy on household kerosene, there are growing fears that marketers will sell the scarce commodity as high as N250 per litre in some locations in the country, even as government suggested open market price of N83 per litre.

*Kerosene queue.

*Kerosene queue.

Some of the marketers and dealers who spoke to Sweetcrude disclosed that prior to the new price announced by the Federal Government, they sold the product  between N100 and N150/Litre, but with the new price, they will sell at even higher prices.

Most of the filling stations visited in Abuja, the Federal Capital, claimed they have not yet purchased new stock since the announcement, while those that had the product were selling at N120/L.

For instance, Forte Oil in Central Area District, Area 3, said the last time they had the product was three months ago, Total in Area 11 and Area 3, said theirs was last sold two months ago, while all the private stations visited in the same areas did not have the product also.

Commenting on the price hike, ActionAid Nigeria, an anti-poverty agency, argued that this will further worsen the poverty situation in the country.

According to the Country Director, ActionAid, Ms. Ojobo Atuluku, the Federal Government’s decision to remove subsidy on kerosene signifies a continuation of a worrying trend of regressive policies that are emanating in recent times.

She noted that the product is mostly used by the poor who have no other means of preparing their meals and lighting up their homes in the face of unreliable electricity.

Some consumers who commented on the issue like Mrs Hadijat Bello, who resides in Apo Dutse in Abuja, said there is no significant impact from the price hike since she normally bought the product at N110/L even while it was supposedly being subsidised.

Similarly, Aisha Jubril, said she had never bought the product at the regulated price of N50/L and wondered how much marketers will now sell the product at N83/L.

Another resident, Mrs. Jane Oluwaseun, revealed that she had bought the product only twice at N50/L at the NNPC Mega Station, adding that all other times she buys from commercial stations or street vendors for as high as N150/L.

On his part, Mr Ahmed Yusuf, noted that there is not much difference in price between the vendors and the filling stations.

 

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