Macroeconomic Report & Economic Updates

Nigeria Economic Update (Issue 42)

According to the National Bureau of Statistics (NBS), the average price of Premium Motor Spirit (PMS) commonly referred to as petrol increased by 2.36 percent year-on-year but experienced a month-on-month decrease of 0.04 percent, from N164.91 in August 2021 to N164.85 in September 2021. In September, the top three States with the highest average price of PMS were Abia (N172.50), Ekiti (N170.62) and Lagos (N167.80). Additionally, the States with the lowest average PMS were Ebonyi (N162.27), Ondo (N162.20) and Kano (N160.83). The variation in the price of petrol indicates that the Petroleum Equalisation Fund (PEF) had fallen short of its goal of administering a uniform pump pricing for petroleum products across the country. Furthermore, because of the inelastic nature of PMS demand, price volatility and discrepancy immediately affect the pricing of other products and services across the country, thus affecting the optimality of monetary policy. With the recent abolishment of the PEF, structural improvements in terms of absorbing transportation costs are required to reduce cost differentials in the transportation of PMS across the country.

Download Label
March 13, 2018 - 4:00 am
521.08 kB
v.1.7 (stable)