Determinants of domestic energy prices in Nigeria (1980-2020)
Article Sidebar
Main Article Content
Abstract
The study examined the factors that influence the domestic prices of petroleum using the price of premium motor spirit (PMS) in Nigeria from 1980 to 2020. The study employed Autoregressive Distributed Lag model for the data analysis. The scope of the data used from the analysis of the study ranges from 1980 to 2020. The study found out that there exist a positive relationship between petroleum pump price and inflation and the result is statistically significant at 5% level of significance. The study also discovered that both oil output and oil import are the prime factors affecting the prices of domestic energy in Nigeria. The study recommended that our refineries should be put in good shape so we can save the cost of having to export to other countries for refining as this contributed to the high cost of selling the product in Nigeria. The study also recommended diversification of the economy in favour of the real sectors as this will help provide more goods for exports thereby improving on the balance of payment.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
References
- Owolabi G, Odoh D, Odeshi A, et al. Occurrence of Dynamic Shear Bands in AISI 4340 Steel under Impact Loads. World Journal of Mechanics, 2013, 3(2): 139-145. https://doi.org/10.4236/wjm.2013.32011
- Adenikinju AF. Electric infrastructure failures in Nigeria: a survey-based analysis of the costs and adjustment responses. Energy Policy, 2003, 31(14): 1519-1530. https://doi.org/10.1016/S0301-4215(02)00208-2
- Odoh BI, Ilechukwu JN and Okoli NI . The Use of Seismic Attributes to Enhance Fault Interpretation of OT Field, Niger Delta. International Journal of Geosciences, 2014, 5(8): 826-834. https://doi.org/10.4236/ijg.2014.58073
- Iwayemi A and Fowowe B. Impact of oil price shocks on selected macroeconomic variables in Nigeria. Energy Policy, 2011, 39(2): 603-612. https://doi.org/10.1016/j.enpol.2010.10.033
- Iwayemi A, Adenikinju A and Babatunde MA. Estimating petroleum products demand elasticities in Nigeria: A multivariate cointegration approach. Energy Economics, 2010, 32(1): 73-85. https://doi.org/10.1016/j.eneco.2009.05.002
- Nwahowa WC, Onwuka OO,Ejem CA, et al. Movements of petroleum pump prices and standard of living; Evidence from Nigeria. International journal of social sciences and management research, 2018, 4(8): 57-67.
- Sanni IM. The Implications of Price Changes on Petroleum Products Distribution in Gwagwalada Abuja, Nigeria. Journal of Energy Technologies & Policy, 2014, 4(7): 1-15.
- Buba A, Abdu M, Adamu I, et al. Socio-Economic Determinants of Households Fuel Consumption in Nigeria.Buba, 2017, 5(10). https://doi.org/10.29121/granthaalayah.v5.i10.2017.2312
- Litman T. Appropriate Response to Rising Fuel Prices. Victoria Transport Policy Institute, 2011. https://www.vtpi.org/fuelprice.pdf
- Ologundudu MM and Abioro MA. Petroleum Pump Price Increase and Business Environment: The Nigerian Economy Standpoint. (IOSR Journal of Business and Management (IOSR-JBM), 2018, 20(3): 60-70.
- Adeniran AO. The Impact of Oil Price Volatility on Nigeria Economy. A Research Thesis, 2016.
- Orlu RN. The impact of domestic pricing of petrol on economic growth of Nigeria (1970 – 2013). Global Journal of Social Sciences, 2018, 16(1): 1. https://doi.org/10.4314/gjss.v16i1.1
