Price of Petrol in Nigeria Among Cheapest in Africa—Report

July 21, 2022
Price of Petrol

By Dipo Olowookere

Analysts at Picodi.com have said the price of premium motor spirit (PMS) commonly called petrol, in Nigeria is among the cheapest in Africa.

In its Petrol Index, it was noted that this is despite the price of the product increasing by 3.4 per cent between January 2022 and June 2022 to $0.42/litre, with the price the cheapest in Algeria at $0.31/litre in the same period.

South Africa, according to the data analysed by Business Post, recorded the highest increase of 19.6 per cent, selling at $1.51/litre, with Kenya recording an increase of 18.2 per cent to $1.45/litre and Zambia posting a rise of 17.0 per cent at $1.33/litre.

“In June, the average price of a litre of petrol in Nigeria was N172.73. This price is 3.4 per cent higher than in January, when, on average, a litre of petrol cost N166.99,” a part of the report said.

Recently, the official pump price increased from N165/litre to N185/litre after some days of scarcity of the product. Nigeria has refused to remove fuel subsidies despite passing a law to prohibit this. President Muhammadu Buhari delayed the implementation of this law after organised labour unions threatened industrial action.

In terms of the litres of petrol citizens can buy with a monthly salary in Africa, the report disclosed that Nigeria recorded a gradual decline when compared with four years ago. It said in 2019, the average was 501 litres and in 2020, it rose to 539 litres despite the country being shut down for most of the period due to the COVID-19 pandemic. The next year, it dropped to 431 litres and as of June 2022, it stood at 391 litres.

The Petrol Index also revealed that in other oil-producing countries like Nigeria, the average price of petrol did not increase as they had substantial raw material resources saved for the rainy days.

“Countries such as Saudi Arabia, Kuwait and Qatar were not affected by the world’s economic situation. The governments of countries such as Columbia, Ecuador and Kazakhstan have decided to either freeze or set the upper limit on petrol prices,” the report stated.

It was stated that in Kuwait, the price was $0.34/litre and in Iran, it was $0.35/litre.

“In the global ranking of purchasing power, the podium still belongs to the Gulf countries: Qatar (5,968 litres), Kuwait (5,578 litres) and Saudi Arabia (4,372 litres),” the report said.

Dipo Olowookere

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

Mr Olowookere can be reached via [email protected]

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