Following the total deregulation of the downstream sector of the oil and gas industry, petroleum products are now thrown up to the forces of demand and supply, most especially, Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO) – diesel.

However, the Dual Purpose Kerosene (DPK) known as kerosene that served as common domestic energy supply for Nigerians has become a scarce commodity and even if available, remain unaffordable by the lower class who depend largely on it. There is urgent need for government to make out a clear cut policy on kerosene as applicable to petrol and diesel.

The lower class of the economy is identified with kerosene as major means of cooking for household and commercial purposes. For the past few months, kerosene retail price had been sold between N200 and N500 per liter at filling stations across the nation due to the deregulation policy.

The hike in price of kerosene has been attributed to the high cost of foreign exchange consequent upon the new Forex regime of the Central Bank of Nigeria (CBN).

The effects of the rising kerosene prices have been felt by average Nigerian citizens who used Liquefied Petroleum Gas (LPG) for their cooking purposes. The retail price of gas has skyrocketed from N2, 500 for 12.5KG of gas to over N4, 000 nationwide while 6KG is sold above N2, 000 at gas stations. The intention of government to share one million gas cylinders to Nigerians also intensified the increased gas prices.

However, the hostility of the Niger Delta militants through incessant crude oil and gas pipeline vandalism has made the nation’s prime product revenue earner to dwindle. The activities of the militants have led to reduction in the capacity of products for refineries. All efforts to bring the activities of the militants under control by government so far has yielded no positive result. But we hear now that Ex- President Goodluck Jonathan may intervene as part of efforts to revert the trend.

Similarly, aviation fuel has become worrisome as many airlines have resulted to reducing their flight schedule in the country while many flights are cancelled, disrupting national events and businesses.

Last month, the submission of Nigerian Maritime Administration and Safety Agency (NIMASA) audit report was delayed for almost two hours due to aviation fuel scarcity, as the Committee saddled with the responsibility to present the report to the Minister of Transport, Mr. Rotimi Ameachi could not arrive on time.

However, before the expiration of last administration, the price of kerosene was fixed at N50 at the Nigerian National Petroleum Corporation outlets while other petroleum independent marketers sell above the regulated price. Recall that in January this year, Federal Government increased the pump price of kerosene from N50 per litre to N83 per litre. The post-deregulated retail price of kerosene went up due to absence of policy direction by the government.

According to the Petroleum Products Pricing Regulatory Agency (PPPRA), the revised pricing template directed NNPC to sell Kerosene (HHK) at N83 per litre. But the NNPC has stopped selling kerosene nationwide which gave independent marketers power to determine the prices of kerosene.

President Muhammdu Buhari’s administration has to come up with a policy framework on the deregulation of kerosene as applied to diesel and PMS to avert the current challenges faced by larger population of Nigerians that depend on kerosene for household uses. The independent marketers in the petroleum industry have continued to add to the economic woes facing the nation with the kerosene price hike.

Analysts, stakeholders in the oil and gas sector and economic experts have called on Federal Government to provide clear policy on kerosene in the interest of poor Nigerians. Kerosene which is the only crude oil products accessible to poor Nigerians in the rural areas, is currently expensive compared to PMS and diesel and out of tune with the present realities.

The National Union of Petroleum and Natural Gas Worker (NUPENG) had advised government that a clear policy on kerosene is imperative to solving current situation. The South-West Chairman of NUPENG, Alhaji Tokunbo Korodo had said the product was becoming unaffordable. He noted that the deregulation of diesel and petrol by government provided no clear policy framework on kerosene.

Analysts have also said the increase in the kerosene pump price is attributed to the removal of subsidy payment to marketers in the country.

For marketers, the hike in kerosene price resulted from forex scarcity, inconsistent policies by government. They said, “Forex liberalization has become big task, particularly for independent marketers. The market policy is pegged on bidding which make highest bidder to get available forex”

Analysts said foreign banks have cancelled all credit lines provided to marketers because of unpaid debts. The new forex regime which changed the exchange rate from N197 to N287 also affected oil sector importation business.

National Chairman of Surface Tankers Kerosene Peddlers (SUTAKEP), Comrade Benjamin Rotimi, had stated that independent depot owners in Lagos lacked adequate supplies. He said: “All NNPC depots nationwide have not loaded Kerosene for the past 20 years. When kerosene is not available at NNPC depots, the private depot owners use the advantage to give ‘crazy price’ regime.”

Economic Confidential investigation revealed that the Petroleum Products Pricing Regulatory Agency (PPPRA) had stopped updating the kerosene and diesel prising templates since May 2016, when new pump price of petrol was announced.

The question is, if the government claimed that the welfare of Nigerians is paramount to the change mantra, a definite, clear cut policy direction have to be provided on kerosene to alleviate the problems faced by poor masses.

The All Progressive Congress (APC) government had as part of its manifesto, insecurity, massive job provision, welfare of Nigerians and corruption fight. However, the last one year had been very tough for average Nigerians with massive job cut, hunger and hyper-inflation resulting to high prices of foods and other commodities in the market.

The government had resulted to increasing Value Added Tax on goods and services from 5% to 10% despite the tougher times and economic recession facing the nation. Analysts have listed some of the signs of recession currently facing the nation as; rising cost of living, decreasing purchasing power of the citizens, increasing job losses and general hardships.

The Minister of Finance, Mrs Kemi Adeosun had affirmed that there is economic recession in the country after addressing the Senate on the state of the economy last month. She however said: “Social intervention programmes have been funded to provide relief to the poorest. Every single person in every local government will be touched by those programmes. We have started and we will continue to get us out of it.”

In all indications, the government is battling with the economic issues created by previous administrations in this country. However, there is need for drastic action to be taken on issues affecting common man on the street to reduce poverty and unemployment across the nation. Government therefore should not be unconcerned on the hike in pump price of kerosene in the country.