Open Access

Peer-reviewed

Research Article

Main Article Content

Ologbenla Patrickcorresponding author
https://orcid.org/0000-0001-8127-3155

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.

Keywords
petroleum, auto regressive distributed lag, premium motor spirit PMS, petroleum pump price

Article Details

How to Cite
Patrick, O. (2021). Determinants of domestic energy prices in Nigeria (1980-2020). Resources and Environmental Economics, 3(2), 305-311. https://doi.org/10.25082/REE.2021.02.006

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