Impact of Petroleum Pump Price on Prices of Selected Food Items in South-Western Nigeria

Résumé

This study investigated impact of petroleum products pump price on essential food commodities in South-West, Nigeria between 2017 and 2022, covering Ekiti, Lagos, Ondo, Ogun, Osun and Oyo States. Data on prices of rice and beans, diesel, petrol, and kerosene prices, price of imports and consumer price index, were collated from National Bureau of Statistics (NBS) fact sheet and Global data laboratory. Two regression models were estimated in the study. Findings show that automotive gas oil price caused the price of beans in Osun and Oyo to increase; Petroleum Pump price significantly contributed to the increasing price of beans in Ekiti State; Consumer Price Index and goods import significantly caused the price of beans to increase across the six states. Results of the second model indicate that automotive gas oil price has negative impact on the price of rice in Ondo State; petroleum pump price has positive and significant influence on it in Ekiti and Lagos; the price of kerosene played positive and significant role on the price of rice in Lagos, Ondo and Osun; consumer price index significantly impact on the price of rice in the region. The study recommended government to make implementation of adequate policies aimed at stabilizing petroleum pump prices a priority to mitigate the impact on essential raw food items. Also, prices of food items will respond to lower consumer price index when the rate of inflation is kept low and in control by the government.