Why Is It That Kerosene More Expensive Than Petrol In Nigeria?
6 days ago146 views
Hearing the news that kerosene is ₦800 per liter, petrol is ₦200, and demand for petrol is higher than kerosene. Why is it like that?
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∘Last activity 6 days ago
I'm surprised Nigerians don't research. I've tried to educate people on several practical uses of Kero beyond domestic cooking; back then, when I was at the Depot, even the Government valued Kero more than anything. A typical importer might not be able to import kero more than once or twice a year, and the 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 of 2 hours or less; you must see the 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 the same product treated as ATK and used for all aircraft and airplanes to move.
Kerosene has more value than PMS and is responsible for Nigeria's high cost of aviation tickets today. There is high demand for Kero because many importers don't bring in Kero due to the high cost of maintenance on its storage.
STORAGE AND MAINTENANCE
As an importer, whenever you bring in Kero, you prepare to receive it like a week before it arrives, unlike bringing in other white products.
There is a process of evacuation which involves opening maintenance holes on both sides and providing kits for the maintenance team to go into the tanks that have concealed over 10 million PMS for over six 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 five adults off their feet.
God forbid you to miss your step, and your gas cylinder or mask goes off; before you crawl your way back to the Manhole, you might have given up the ghost.
So, on average, importers spend about 6 Million for the 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 the case of DPK that you bring in just once in 4 years. In that case, whenever you are bringing in DPK, you must do a thorough evacuation, which would even make you lose about 8000 liters of the initial product, cause you to 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.
6 days ago
∘Last activity 6 days ago
That's because Kerosene is not only used in houses; it's also used by planes as aviation fuel or jet fuel, thereby creating an increase in daily demand with limited supply, hence the high cost.
Secondly, kero is denser( heavier) than petrol and more refined than diesel, making the cost of production way more expensive than both.