Oil marketers have cited low patronage and declining demand as the main reasons behind the current scarcity of Household Kerosene (HHK) in the country.
Reports of severe shortages and skyrocketing prices have sparked consumer complaints, prompting an explanation from industry stakeholders.
Dr. Billy Gillis-Harry, the National President of the Petroleum Retailers Outlet Owners Association of Nigeria (PETROAN), attributed the scarcity to a dramatic shift in the consumption patterns of kerosene.
He noted that kerosene usage has fallen sharply as alternatives such as gas have become more widely adopted.
Gillis-Harry further explained that there are two main types of kerosene: Dual-Purpose Kerosene (DPK) and Household Kerosene (HHK).
DPK serves multiple purposes, including as aviation fuel (Aviation Turbine Kerosene or JET A-1) and for cooking and lighting.
In contrast, HHK is specifically intended for household use.
He said the demand for HHK has dropped, which has contributed to the ongoing scarcity.
“HHK is purely for home use, while DPK can be used both domestically and in aviation. The consumption of HHK has drastically decreased due to the rise of gas as an alternative for cooking and heating,” Gillis-Harry explained.
He also mentioned that while kerosene was once a staple product, the current consumption rate is much lower, with stock at filling stations often sitting unsold for months.
“If you receive an allocation of 45,000 litres, it can take months before it is sold out, and this impacts the business. The profit margin is extremely low, so marketers are struggling with inventory that doesn’t move fast enough.”
On the issue of kerosene being mixed with aviation fuel, Gillis-Harry clarified that he had never observed such practices and emphasized that the Nigerian National Petroleum Corporation (NNPC Ltd.) strictly prohibits the mixing of products.
Alhaji Maigandi Garima, the National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), also acknowledged the low demand for kerosene, attributing it to the growing preference for Liquefied Petroleum Gas (LPG) or cooking gas.
“Most people now rely on the green energy, LPG,” Garima said, highlighting the shift in consumer behavior.
He confirmed that kerosene was being loaded from the Port Harcourt and Dangote Refineries, but noted that it could take up to two months for stations to sell their entire kerosene supply.
Meanwhile, some consumers have turned to the black market, where prices for kerosene have surged, with reports indicating that a litre can cost anywhere from N1,500 to N2,000 due to the ongoing scarcity.
As the kerosene shortage persists, both industry leaders and consumers are grappling with the effects of shifting energy preferences, with LPG increasingly becoming the fuel of choice for many households across the country.