11 charts showing how energy prices affect Nigerians
The best phrase to describe Nigeria’s energy situation is this: “the chickens have come home to roost”.
We’re in the middle of the worst energy crisis yet.
Key takeaways
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As a result of the Russia-Ukraine crisis’ impact on energy supply chains and Nigeria’s long-standing domestic energy issues, we’re in the middle of our worst energy crisis yet.
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Prices of diesel, jet fuel and cooking gas have skyrocketed. While Nigerians might be insulated from the petrol price hike, government revenues are feeling the pinch.
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But how does this energy situation affect ordinary Nigerian citizens? Well, with Nigerians already battling high inflation and unemployment rates, the energy crisis has direct implications for our cost of living.
It’s not just Nigeria though, there are global energy problems thanks to the supply shortages caused by Russia’s invasion of Ukraine. You see, Russia is one of the top producers and exporters of crude oil and natural gas, especially to Europe. So, with Russia invading Ukraine, European countries are desperate for other sources of oil and gas. Unfortunately, other countries' crude oil and gas production isn’t increasing fast enough to plug the supply gap. And so, prices have risen to reflect the demand and supply imbalance.
However, while crude oil prices have risen to over $100/barrel, refined products have risen even faster. Petrol, diesel and jet fuel prices are at the same level they would be if crude oil prices were at
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