Harrynight:



This kero has always been used for cooking and as aviation fuel when the price was relative low, like a little above the price of petrol is its not new,

Why the sudden price skyrocketing?

Insecurity has made air transportation the only safer way in our country.

Infact, a home that is rated to live on low income budget go extra mile to raise money for flight ticket whenever their children secure NYSC posting.

Many politicians are seriously working hard to secure aviation license for airline operation.

It is now very competitive and highly profitable.

Have you imagined the number of people who vowed never to travel via rail transportation after the last train attack?

This is because there's no subsidy on Kerosene

lonelygem:


God bless you. I'm surprised Nigerians dont research. Ive tried to educate people on several valuable use of Kero beyond domestic cooking, back then when I was at the Depot, even Government value Kero more than anything. A typical importer might not be able to import kero more than once or twice a year and same importer brings in PMS and AGO 3 times a week.

And at every point Kero is discharged through our cargo line, it's a matter 2 hours or less, you just must see NNPC barge anchoring around the jetty waiting for the Kero vessel to disembark for it to batt and load same kero.

Kerosene known as DPK is same product treated as ATK and used for all aircraft and airplanes to move.

Kerosene has more value than PMS and it is responsible for high cost of aviation tickets in Nigeria today. There is high demand for Kero because many importers dont bring in Kero due to high cost of maintenance on it's storage.

STORAGE AND MAINTENANCE
As an importer, everytime you bring in Kero, you start preparing to receive it like a week before it arrives which is unlike bringing in other white products.

There is a process of evacuation which involves opening of man holes on both sides, providing kits for maintenance team to go into the tanks that has concealed over 10 million PMS for over 6 years with PMS still in there..

We used to dress fully kitted with oxygen gas bottles on our back, with high pressure jets capable of throwing 5 adults off their feet.

God forbid you miss your step and your gas cylinder or mask goes of, before you crawl your way back to the Manhole, you might have give up the ghost.

So, on average, importers spend about 6 Million for storage of DPK. And the process takes a whole week which is not so in PMS and AGO

We dedicate tanks for various products. But not in a case of DPK that you bring in just once in 4 years. In that case, whenever you are bringing in DPK, you must do thorough evacuation which would even make you lose about 8000 litres of the initial product, make you contract evacuation and proper venting of the tank, and wait for DPR to come and confirm and sign that the tank is safe for storage.

Thank you for sharing this piece

Taigaban:
There is no much money to be stolen through kerosine subsidy, hence the need to remove subsidy completely. And besides the rich don't use kerosine but gas. To crown it all, complete removal of subsidy on kerosine is the easiest way to punish the poor and weaken their ability to revolt.

govt subsidize only petrol all other products from crude have been deregularize that's y diesel, kerosene and atk goes for 1k ..also put into consideration that naira has lost power and we buy these products from foreign countries..by Nov when govt stops subsidy on petrol a liter will go for between 1k and 1200..its no longer sustainable...its either we build our refinery or buy at that rate..simple

naijapikin2:
Would you rather use petrol in your stove?
Just kidding
I've already wondered too.
Nigeria is just a land of confucius

pls dont u will end up in a body bag..petrol is too volatile and it vaporizes rapidly..u wont survive it o.pls dont

There’s no subsidy on kerosene and diesel.

There is no subsidy on kerosene and diesel.

Adiob200:
Hearing the news that kerosene is #800 per litre, and petrol is #200..and demand for petrol is higher than kerosene.. Why is it like that?

Kerosene is Similar to aviation fuel.They are very light and can last longer than petrol.

Femeto:
Kerosene is Similar to aviation fuel.They are very light and can last longer than petrol.

its subsidy...govt pays subsidy on only petrol...diesel wax kerosene and atk which our planes use are deregularized

seunmsg:
There is no subsidy on petrol and diesel.

Diesel...yes, no subsidy

Petrol....there is a subsidy, otherwise if there was none, we would have joined Ghana, Niger, and Cameroon in paying over N400 for one liter of fuel, plus government would no longer be allocating cash for subsides at all.

Femeto:
Kerosene is Similar to aviation fuel.They are very light and can last longer than petrol.

plane uses kerosene at a diff ph...automated turbine kerosene

grandstar:


You asked a very observant and insightful question.

The difference is simply that the price of kerosene is deregulated, that is, subject to market forces.

On the other hand, the price of petrol is heavily subsidized. That means the government buys it at the deregulated rate and sells it at the heavily subsidized ₦165 per litre rate, incurring huge losses.

Let's undertake a crude government cost of subsidizing petrol daily. Let's assume petrol will be ₦600 without a subsidy. Let's subtract ₦600-₦165 and it's ₦435 per litre subdidy

The country uses a minimum of 50m Litres daily and when multiplied by the subsidy, you get ₦21.75bn daily. If we go further and multiply by 365days, you get approximately ₦7.94 trillion per year.

One can now understand when Ngige said the country is broke.

Truth.

But to remove subsidy, and save that money....Nigerians go say no...whether atikulator, obidient or BATified.

twentyfivekobo:


Diesel...yes, no subsidy

Petrol....there is a subsidy, otherwise if there was none, we would have joined Ghana, Niger, and Cameroon in paying over N400 for one liter of fuel, plus government would no longer be allocating cash for subsides at all.

I mean kerosene and diesel.

Adiob200:
Hearing the news that kerosene is #800 per litre, and petrol is #200..and demand for petrol is higher than kerosene.. Why is it like that?

More market

osazsky:
govt subsidize only petrol all other products from crude have been deregularize that's y diesel, kerosene and atk goes for 1k ..also put into consideration that naira has lost power and we buy these products from foreign countries..by Nov when govt stops subsidy on petrol a liter will go for between 1k and 1200..its no longer sustainable...its either we build our refinery or buy at that rate..simple

It is exactly 20 years today in 2002 when we campaign and advocate for deregulation. But government turned deaf ears. Soon the Federal government will no longer be able to pay subvention to states. Monthly revenue allocation to states will soon end. We had advocated for states to become federating units, thus harnessing their resources to take care of her expenses, again they refuse to see. Terrible times ahead.

because federal government are yet to remove subsidies on petrol

SlayerofSatan:
There's greater demand for kerosene. There are fewer users of petrol because there are fewer car owners and generator owners, so the demand for it, especially when compared with the demand for kerosene, is relatively low.

Only about 10% of Nigerians use petrol, whereas over 60% use kerosene, mostly for cooking.

where is the 60% that use kerosene? lolz
the main reason is that petrol is subsidized unless kerosene and diesel.
if u don't better go and find out about consumption and production of these petroleum product in nigeria.
consumption of petrol is far higher compare to DPK

Taigaban:
It is exactly 20 years today in 2002 when we campaign and advocate for deregulation. But government turned deaf ears. Soon the Federal government will no longer be able to pay subvention to states. Monthly revenue allocation to states will soon end. We had advocated for states to become federating units, thus harnessing their resources to take care of her expenses, again they refuse to see. Terrible times ahead.

1.I think you mean 2012

2.Government past and present have been advocating for deregulation since the 1980's....if not earlier.

3.The reason why it is still there is simple. Deregulation means Nigerians will pay higher for fuel.

4.That's why everytime deregulation has been brought up, Nigerians have always said no.

5.Government from time to time partially removes subsidy...which manifests as an increase in price, and which is why petrol has gone up from 15 kobo in 1981 to N175 today.

6. If states are allowed to 'become federating units'...taxes in most states will shoot up short term....and it is not just Northern states, every Southern state except the South South, Imo and Anambra....will end up exacting higher taxes in the short term

As for using resources...it works when the price of the resource you are selling is high enough to sustain your populaiton. Plus, if we want to make a living from either

1.Agriculture...we have to mechanize...and less than 10% of our farms are mechanized.

2.Minerals...the same thing.

3.Concerning one and two...prices can fall...which is why African countries that rely on them are also, like Nigeria, heavily in debt to the IMF and World Bank.

4.The only way states can prosper is for states to become manufacturing hubs...which means removing subsides on power so that electricity supply can attract more investment...meaning we get things like seprate powergrids, and more generation. (Nigerians have said no to deregulating power too).

Tonytonex:
you don't even understand the diagram you uploaded.

I am sure you don’t even understand what you just wrote! Brainless people everywhere

Kerosene and diesel are more expensive than petrol now because Kerosene and diesel are deregulated (i.e. not subsidised) while petrol is regulated in Nigeria (i.e. subsidised)

twentyfivekobo:


I think rich guys use petrol more than diesel.

Diesel engines, from what I hear, are very difficult to maintain and run. (I may be wrong, tho).

If I was rich , and living in Nigeria, I won't be using a diesel car...it would be petrol. Petrol , even back when diesel was subsidized, has always been cheaper than diesel.

trailers used for movement of goods especially food which is even more important for life need diesel to run.

Kerosene is used as substitute for aviation fuel, and the price is unregulated.

Tonytonex:
selfishness and greed won't let them do that.

hmmmm that's the country we see ourselves.

odaniel1:

See the applause given for wrong teaching. This is how a lot of Nigerian students graduate with an orthodox and antiquated form of learning based on theories that aren't time-tested cos of extinction. Most of our textbooks quote ancient times past the 90s. [b][/b]Petrol is regulated simple! Stop misinforming the public with this old-Nigerian-lecturer style of gifting out information

Am sorry if my comment offended you, maybe you too can educate us more on the topic for better understanding sir.

Because of Buhari disdain for poor masses, Kerosene has always been cheaper than patrol until Buhari took over.

SouthSouth1914:


There is no way cost of production would affect the price of Kerosene. This is one of the many constituents by products of fractional distillation of Crude oil!

For clarity, cost of production involves all the processes a product pass through before it gets to the final consumer, that includes cost of storage. So if you do a little research on production cost on all three popular petroleum fractions, you will find out kero cost more than three times to produce than the closest.

twentyfivekobo:


Truth.

But to remove subsidy, and save that money....Nigerians go say no...whether atikulator, obidient or BATified.

You've said the truth

SlayerofSatan:
There's greater demand for kerosene. There are fewer users of petrol because there are fewer car owners and generator owners, so the demand for it, especially when compared with the demand for kerosene, is relatively low.

Only about 10% of Nigerians use petrol, whereas over 60% use kerosene, mostly for cooking.

It's because it's subsidized. Kerosene and diesel aren't

Immatex:

The real reason Kerosene is expensive is because it's the raw material for jet fuel.

Helicopters use Kerosene as fuel too.

Jet fuel is made from the Futher breakdown of Kerosene.

So Kerosene used for cooking is competing with Jets and Helicopters thus the high price.

Wrong. It's because it's subsidized. Kerosene isn't