Furry, frustration as kerosene price fluctuates

Date: 2016-08-13

The total withdrawal of subsidy on kerosene otherwise known as dual purpose kerosene (DPK) has relaxed hitherto scarcity in some filling stations that sell the commodity to members of the public. AHMED 'LATEEF reports on the lingering price inconsistency and situation on the product in Ilorin

That the growing inflation in all aspects of the economy is taking its tolls on the generality of the masses is no longer a news item. The situation has not eluded anyone regardless of social status. Be it the super rich, the rich and the poor. Everyone is feeling the heat that accompanied the hard time.

Visits to public and private institutions across the country attest to the unpalatable trend of events that continue to dictate the pace and shape of business operations.

The staggering reality forcibly made some institutions to cut cost and even downsize the workforce as earnings and revenues plummet further.

Despite this shortfall, the value of naira in the global arena has also continued to go down without end in sight to the crisis while the hard currency which benchmarks the naira witnessed sharp increase.

For instance, the federal government's exchange rate of a US dollar pegged at N197 through the Central Bank of Nigeria has remained ineffective in stemming the ugly trend. At the parallel market, a dollar now exchanged for a whooping sum of N400.

While the unpleasant situation has left no one doubt that everybody is enmeshed and bearing the brunt, the downtrodden appears to be the worst hit.

The hard time did not only manifest in their earnings, it has also become a glaring situation in what they use for domestic chores.

Before now, using cooking gas is perceived as exclusive preserve of the upper class. It is uncommon to find or see cooking gas in households of middle class. Those who have in their homes know what it takes to purchase gas in plants. The trend of events in the price of gas, primarily precipitated by inflation has also affected gas and the price has skyrocketed.

While preference for gas has not discouraged people who use it in spite of the price that has remained on the high side, kerosene seen as affordable cooking commodity usually patronised by domestic users has also witnessed frequent increase.

The price has remained inconsistent despite the total withdrawal of subsidy on the product by the government.

Investigation conducted across filling stations dispensing kerosene to the public in Ilorin yesterday revealed that the price of the commodity was unstable. It was oscillating between N210, N220 and N230 per litre last week.

But findings yesterday showed that while some stations sold the commodity at N190, others dispensed at N205.

Visit to Yemsonat along New Yidi Road, Ilorin revealed that a litre of kerosene was dispensed at N190 per litre.

An attendant at the station told our correspondent that the price of the commodity was not stable in the market hence the decision of the management of the station to sell based on the price the commodity was bought from Lagos and other states where they got supply.

The female attendant said the station had no reason not to sell to the public as long as the commodity was available, but insisted that price fixing was dependent on the amount and the supply they got the product.

She said, "Apart from petrol that we sell in this station, we also sell kerosene, and whatever we sell and the price we dispense to the public was determined by the amount the management got the product from Lagos and other places where we buy our product.

"For some time now, the price of kerosene in the market has not been consistent. We should not forget that the government itself has completely withdrawn the subsidy while the inflation is not also helpful.

"Except there is unexpected change in price, we sell a litre of kerosene at N190 per litre. But you know as business operator too, we cannot determine the market price, the price we fixed for product depends on the amount we got it from depots in Lagos and other places".

Similarly, a visit to Rockfield Petroleum on Fate Road, Ilorin also showed that a litre of kerosene was dispensed at N205 per litre. This was against N210 that the station sold the commodity last week.

An attendant at the station, who refused to disclose his same told City Rove that fixing price of kerosene was determined by the amount they got the product from depot.

He said the station was not out to inconvenient any buyer while it would also be harmful to dispense below N205 due to the dictate of the supply.

The development had pitched some residents against government, declaring the frequent increase in price of kerosene as premeditated.

They argued that the decision of the government to totally hands off involvement in the mode, operation and sale of DPK with subsidy withdrawal, was not in the best interest of the downtrodden.

A resident, Mr Abdulsalam Bamidele, took a swipe at Federal Government for what he called 'abdication of responsibility' and thus leaving the citizenry to the whims and caprices of the marketers.

He said in a saner clime, government would not completely remove what would be a palliative to the masses.

Bamidele was of the opinion that the time has come for the relevant authorities to reverse the decision to cushion the effect of the current hardship.

"It is saddening that up till now no concrete steps had been taken to reduce this pain except the usual lip service. We are tired of living in that past that has become synonymous with this government. We are the masses. If we cannot get kerosene at affordable price, then what else do we have to enjoy from the government? He queried.

Another domestic user of kerosene, Hajia Semiat Kareem, who spoke in Ilorin, also stressed the need to reverse the subsidy withdrawal on the product in order to address the plight of the commoners.

She said many domestic cooks, who could not afford the high cost of kerosene, had opted for sawdust.

Hajia Kareem expressed displeasure that government was not taking issues of the masses with utmost seriousness.

A trader, who wouldn't want her name in print said the cost of DPK has become unbearable while government should strive to reduce the impact of the hardship on the masses.

 

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