IMPACT OF DYNAMIC IN PETROLEUM PRODUCT PUMP PRICE ON PRODUCTIVITY IN NIGERIA

Abstract

The study examines the impact of petroleum product pump price fluctuation and productivity in Nigeria covering the period of 2013 to 2024. Data used were sourced from National Bureau of Statistics (NBS) and CBN annual report. Data collected include petrol Motor spirit (PMS)price, Automative Gas Oil (AGO) price, and Dual-Purpose Kerosene prices (DPK). The data collected were analysis with multiple regression technique and the result shows that Dual Purpose Kerosene (DPK) has negative relationship with productivity, Also, the result indicate that Automotive Gas Oil (AGO) show a negative and significant relationship with productivity. Finally, Premium motor spirit (PMS) shows a positive but weak relationship with productivity. The study concludes that petrol products pump prices fluctuation has significant negative affect on productivity, and it is recommended that government should subsidies diesel price and encourage investments in the establishment of more refineries, which will result to reduction in the price of kerosene and petrol prices, ultimately leading to increase productivity and improve standard of living of household in Nigeria.