Downstream operators and petroleum marketers have lamented that distribution and sale of kerosene hae dropped drastically due to the fact that more Nigerians now prefer to use Liquefied Natural Gas (LPG) otherwise known as cooking gas, even as they said that kerosene is not even available.
A petroleum marketer, Samuel Omachile in a chat with Shipping Position Daily at Ibafon jetty in Lagos last week, noted that the struggle to buy kerosene has become more challenging for Nigerians, even at NNPC petrol Station.
He noted that unlike what obtains in year 2007 when cooking gas was strictly for the rich, the product is now being used by more people in rural areas as the price has been brought down from N7,000 to N3,500 per 12.5 kg cylinder. He noted that currently, many of the petroleum tank farms along the Apapa axis do not even have kerosene for distribution.
He said “the main reason kerosene have not been available is because there is so much pressure on the product by the airlines, and we all know that the pricing of kerosene is determined under Jet A1, which is the same thing for aviation fuel, any time the crude oil price goes up the kerosene scarcity comes”
The marketer noted that Nigeria is the only country that still relies largely on kerosene for household cooking. He said that main reason kerosene price cannot be determined, except there’s subsidy, is that for a very long time now the country has depended on importation of kerosene.
Also speaking with Shipping Position Daily, another marketer, Mr. Fidel Ose said that kerosene is not readily available for now and that the few tank farms with the commodity are selling it at an expensive price.
He said that this has driven more Nigerians to cooking gas which he said is cheaper and safer for domestic use. He said that this has taken the pressure off kerosene and made demand for kerosene to drop.
He said “kerosene is not even available, the few ones that came the other day was sold for N185. Everybody is now using gas, more people are now exposed to the benefit of cooking gas and this has made some tank farms not to have the product. I also understand that more gas companies are being licensed to begin operations in Nigeria”
“The price of LPG is N3500 for 12.5kg, apart from the fact that it is readily accessible, it is cleaner, safer, and it’s just the start-up cost that is high”
He said that what most tank farms are selling now is the Automotive Gas Oil (AGO); also known as diesel.
Discussion about this post