Is The Price Of Petrol At Par Across States Within Nigeria ???

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If you are living in Nigeria then you must be familiar with the petrol crisis   that occurred some weeks ago where many Nigerians had great difficulty in buying petrol for their cars and generators . Many experts offer diverse opinions with regards to the cause and solutions to the petrol crisis.

Presently the government officially pegged the price of  petrol at N86.50 per liter, some have argued that its not just possible to have a uniform price of petrol across the entire country owing to many differentiated variable cost due to diverse distribution challenges of conveying products from source  to various locations.

 

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Presently Nigeria has about 3  petroleum refineries which are not yet operating at optimal capacity hence the government has to import petrol from overseas to meet up with the shortfall.

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From the chart above Lagos state has one of the lowest average purchase price of petrol paid by households, one very important factor responsible for this situation is the presence of a sea port in Lagos  through which importation  of petrol is facilitated . Also note Lagos does not have any petroleum refinery .

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From the charts above there exist price disparity among various geopolitical zones in the country.South west with the  lowest average purchase price of petrol paid by households and  south east has the highest purchase price paid by households.

In conclusion it very much safe to say that the price of petrol in Nigeria is not at par across the entire  states , because some states have certain comparative advantages (closeness to source ) and challenges (high distribution cost).

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