immortalcrown:
The rich that spoil the country use petrol.

they use diesel. do you know how much diesel is ?

Kerosene is used as aviation fuel. An investigation revealed this to the government but they ignored it, I think, three years ago.

That's the reason it is more costily than disel and 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.

Really!! Do you know how many cars are moving about daily in Nigeria!! No way kerosene is used more than petrol. For cooking, you can use gas, electricity, firewood,coal etc.

2aces:
That's because Kerosene is not only used in houses, its 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 more denser( heavier) than petrol and more refined than diesel, making the cost of production way more expensive than both.

Succinctly deposited.

The various reasons given on this post as to why kerosene is more expensive than petrol just shows you how enlightened Nigerians really are!! And these are all people who have gone to Sec school and likely uni as well and will tell you they are very educated!!

The simple answer is that there is no subsidy on kerosene!!

AK481:


they use diesel. do you know how much diesel is ?

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.

Demand and supply.

COMPAQ:
The various reasons given on this post as to why kerosene is more expensive than petrol just shows you how enlightened Nigerians really are!! And these are all people who have gone to Se school and likely uni as well and will tell you they are very educated!!

More like people don't understand what a subsidy is, and how it works.

It's also used as ATK Aviation fuel obviously.

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?

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.

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.

Kerosene is the residue of jetA1, or let me say waste product.

2aces:
That's because Kerosene is not only used in houses, its 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 more denser( heavier) than petrol and more refined than diesel, making the cost of production way more expensive than both.

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

Simple. Kerosine pricing has been deregulated.

2aces:
That's because Kerosene is not only used in houses, its 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 more denser( heavier) than petrol and more refined than diesel, making the cost of production way more expensive than both.

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!

Nicepoker:
No subsidy on kerosene same as diesel.

so, you mean if petrol subsidy is removed, petrol will be #800?

Because every agbado roasters uses it and its their turn to be roasted by their saviour cum erectile dysfunction..

COMPAQ:


Really!! Do you know how many cars are moving about daily in Nigeria!! No way kerosene is used more than petrol. For cooking, you can use gas, electricity, firewood,coal etc.

The guy doesn't know what he's saying...
Everybody is using fuel in Nigeria...directly or indirectly....personal cars, commercial cabs, buses, generators....not to mention okada

Kerosene is mostly for cooking...most people use gas these days...the veey poor use wood and coal...

Kerosene is a raw material for paint.
Paint industries use it as raw material in paint production

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!

you don't even understand the diagram you uploaded.

Tonytonex:
so, you mean if petrol subsidy is removed, petrol will be #800?

certainly. The only solution is to put all the refineries into full capacity else.......

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?

Because kerosene is deregulated

vikiphy89:

Kerosene is the residue of jetA1, or let me say waste product.

I doubt you.

Kerosene, paraffin, or lamp oil is a combustible hydrocarbon liquid which is derived from petroleum. It is widely used as a fuel in aviation as well as households.

Kerosene is widely used to power jet engines of aircraft (jet fuel), as well as some rocket engines in a highly refined form called RP-1.

No dey make me dey read book again.

candidbabe:
This was the same question I asked the kerosene attendant at the filling station last month when I bought 7 litres of kerosene for six thousand naira .

It's so pathetic.

Why will you buy 7 litres of kerosene for 6 thousand?

Harrynight:



Is helicopter and jet jus started to use this kerosene
Aint they been using all along

It's called Post COVID Economic realities. If we start the talk, we no go finish today.

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.

Broke..and and tgey dash Afghanistan millions of dollars...gave money to niger republic...

Instead of patronizing innoson motors at cheaper rate and pay the guy reduced money with tax tax holiday...they buy benz, toyota and Lexus for 140-200 million per car for the entire executives....thats just one car...they have more than one inclusing their entourage

..not to mention the cost on the legislature and the judiciary....

Oga...nigeria is not broke..

.we are just mád in this country

ignis:


You are speaking in rubbish.

You're the olodo. Do your research

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 this education.

Nicepoker:
certainly. The only solution is to put all the refineries into full capacity else.......

selfishness and greed won't let them do that.

2aces:
That's because Kerosene is not only used in houses, its 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 more denser( heavier) than petrol and more refined than diesel, making the cost of production way more expensive than both.

Demand, not cost of production.

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.

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?

one is deregulated the other is not as govt pay subsidy for only petrol..its so funny how we export crude oil to the white them they make times 5 by selling petrol ,candle wax,kerosene and ATK( automated turbine kerosene) back to us..due to the irresponsibility of govt,we have only 7 functional airlines left in d whole country as most of them cant afford to buy ATK..we keep spending billions trying to fix an outdated refinery that is obsolete. The amount we have wasted in trying to renovate old refinery would have given us four new refineries built from the strike...if refinery were functional maybe petrol would have been 80 naira cuz we have crude in abundance then diesel too..now they can no longer subsidize petrol..subsidy would be removed before bubu leaves office and petrol will go for 1k..cuz with the projections on ground now we will stop subsidy by November.. if only we had one single refinery there would be no need for subsidy