STATISTICAL ANALYSIS ON CONSUMPTION OF KEROSINE

STATISTICAL ANALYSIS ON CONSUMPTION OF KEROSINE

ABSTRACT

Since the mid-nineteenth century, kerosene has been a popular household fuel. Because of electrification, its use has declined dramatically in developed countries. However, in developing countries, kerosene is still widely used for cooking and lighting. This study focuses on a statistical analysis of kerosene consumption (a case study of Nasarawa Local Government Area). The research work is divided into five chapters, each of which covers the following topics: introduction, historical background, problem statement, aims and objectives, significance of the study, scope of the studies, and research hypothesis. The second chapter reviews related literatures, the third covers research methodology, the fourth covers data presentation and analysis, and the final chapter provides a summary, conclusion, and recommendation for the work.

CHAPTER ONE

1.0     INTRODUCTION

In developing countries, household energy consumption accounts for approximately 80% of total energy consumption, with cooking energy accounting for approximately 95% of this. Cooking energy sources include wood, charcoal, sawdust, kerosene, gas, and electricity. Cooking energy has an environmental impact as well as an impact on the income of women who primarily cook for their families because efficient cooking energy frees up time for other income-generating activities.

Various studies and researchers have looked at disparities in household energy consumption, but this study conducts a statistical analysis on kerosene consumption in Nasarawa Local Government Area to see the level of consumption, the effects of scarcity of the commodity, and alternative sources of household energy for cooking, heating, and others between the period of 2001to 2013.

1.1 HISTORICAL BACKGROUND OF THE STUDY

Survival instincts, combined with geometric population growth exacerbated by extreme poverty in the majority of developing countries, as well as the desire for more comfort, are the primary causes of global resource depletion. Forest resources, particularly wood products, are one of the environmental resources over-exploited in Nigeria without adequate replacement, as a result of scarcity and unavailability of other clean energy sources such as electricity and even kerosene. (Audu, 2013a).

Kerosene provides energy for rural households, employment and income for rural dwellers, and contributes to the energy required for cooking in urban areas across Nigeria (Moss and Morgan, 1981).

Kerosene is Nigeria’s second most important domestic energy source, but

Its application is frequently hampered by scarcity and high purchasing costs (Audu, 2013a). It has been established that kerosene is primarily used in Nigeria’s urban areas (Akwa et al., 2008; NBS, 2009).

According to Audu (2013a), Nigeria is a rich country in disguise, with a high poverty rate, particularly in rural areas, as well as unemployment. Many Nigerians live in poverty and, as a result, cannot afford the price of kerosene, which has become an essential commodity and is now more expensive than premium motor spirit (petrol).

For example, while petrol costs 97 naira (N97.00) per litre, an equivalent quantity of kerosene costs 150 naira (N150.00) or more in most filling stations across the country with long lines. This

Most Nigerians rely on “nature” for fuel, resulting in a high rate of fuel-wood consumption, which leads to unsustainable extraction and depletion in most cases.

It should be noted that cooking is the primary source of energy demand in Nigeria. Furthermore, under the guise of “supposed subsidies” on other petroleum products, the government attempted to stifle their legislative power to make kerosene easily accessible to the poor masses. As a result, many rural and urban households turn to biofuel energy. The implications of this for increasing deforestation in Nigeria can be well understood if one considers that approximately two decades ago, 80.00% of the Nigerian population, mostly rural dwellers, relied solely on traditional fuel wood supplies for their domestic energy needs (Adegoke, 2004).

In 2008, 90.00% of the rural population used fuel wood and charcoal, while national usage was 76.7%. (Demographic and Health Survey, 2009).

Although the Nigerian government has long insisted on deregulation of the “downstream sector of the oil sector,” labor and other civil protests have repeatedly forced the government to reconsider the issue. However, by July 2008, the government had not only set the petroleum price at N65/L, but also promoted the availability of kerosene and reduced its official price to N50/L. This reduction lasted one year and represented approximately 50% of the product’s previous average black market and retail price. The government’s position at the time was to subsidize the product for the benefit of the people. Subsidies on, on the other hand,

Marketers frequently pocket petroleum products through illegal fuel exportation, fuel diversion, and the creation of artificial scarcity.

Furthermore, the key players and the measures put in place by stakeholders to ensure that this critical product is available on a long-term basis are unclear.

This had resulted in significant increases in energy costs for various uses, particularly household cooking. As a result, it is now necessary to conduct this study, which is aimed at analyzing kerosene consumption in Nigeria, with a particular focus on Nasarawa Local Government Area in Nasarawa state.

1.2 STATEMENT OF PROBLEM

It would be an understatement to say that Nigeria’s energy crisis has gotten worse over the last few decades. The crises, like cancerous cells, had spread in unimaginable magnitude to all sectors of the economy. Clean energy is desirable because it reduces the release of air pollutants, which also constitute some externalities to households with negative welfare consequences.

Due to the lack of cleaner energy such as electricity, gas, and kerosene, urban and rural dwellers have resorted to the use of an alternative and readily available source of household energy – firewood, which has left and will always leave behind significant negative consequences such as deforestation, environmental pollution, and other health problems.

Kerosene as a household fuel sourceAs a result of the inaccessibility and high cost of purchasing energy for cooking, lighting, and heating, this research work attempts to analyze the level of consumption of this all-important commodity in Nasarawa local government as the next available source of clean household energy to the use of firewood and charcoals.

1.3 AIM AND OBJECTIVES

The purpose of this study is to examine the rate / level of kerosene consumption as a source of household energy in Nasarawa Local Government, Nasarawa State.

1.4 SIGNIFICANCE OF THE STUDY

This study is important for rural and urban dwellers, the government of Nigeria, and other relevant stakeholders because it enlightens them on the uses, benefits, drawbacks, cost, availability, and level of consumption of kerosene in Nigeria, and Nasarawa Local Government in particular.

Researchers and students who are or may be interested in further research on the level of consumption of kerosene as a major source of household energy will find this study to be very important because it serves as the foundation for future research and improvement.

1.5 SCOPE OF THE STUDY

The study is based on a statistical analysis of kerosene consumption in Nasarawa Local Government. It will be limited to a discussion of the commodity’s level of consumption, availability, cost, and alternative sources of house energy.

1.6 LIMITATION OF THE STUDY

The study encounters some challenges in terms of scare-related literature because no previous record of kerosene consumption in Nasarawa local government has been kept by the government or other relevant stakeholders.

As a result of insufficient funds and time for the researcher to carry out the research, the scope of the study is also limited to Nasarawa Local Government; however, the researcher tries all possible options to ensure that the goal of this research is not compromised by the aforementioned limitations.

1.7 RESEARCH HYPOTHESIS

To achieve the research objectives, the researcher develops the following research hypothesis, which will be tested at the conclusion of the study.

H0: The high cost of kerosene and its scarcity have no significant impact on its consumption in Nasarawa.

H1: The high cost of kerosene, as well as its scarcity, have a significant impact on its consumption in Nasarawa.

 1.8 DEFINITION OF TERMS

KEROSENE: Kerosene is a flammable hydrocarbon liquid that is widely used as a fuel in industry and homes. It is a light fuel oil derived from petroleum that is used primarily in jet engines and domestic heating boilers; paraffin oil.

CONSUMPTION: The process by which a thing’s substance is completely destroyed, used up, incorporated, or transformed into something else. The amount of goods and services consumed in a given time period is referred to as consumption.

HOUSEHOLD: A household is made up of one or more people who live in the same house and share meals or living quarters. It can be a single family or a group of people. If either of the following conditions are met, a single dwelling will be considered to house multiple households.

Meals and living quarters are not shared.

FUEL WOOD: is a type of fuel that includes firewood, charcoal, chips, sheets, pellets, and sawdust and is used as a source of household energy for cooking, heating, and lighting.