Index Number Analysis on the Change of Prices in Petroleum Products

Ibrahim Abdulhakeem; Usman Hassan; Rapheal R. Nenlat

doi:10.56201/ijasmt.vol.12.no1.2026pg1.9

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Index Number Analysis on the Change of Prices in Petroleum Products

Ibrahim Abdulhakeem, Usman Hassan, and Rapheal R. Nenlat

Abstract

The purchasing power of money is dynamic, changing inversely with shifts in the general price level. In Nigeria, the persistent volatility in Petroleum Product Prices has become a significant economic concern. To analyse this issue, this research aims to measure the price evolution of these products from 2014 to 2021. Using Index Numbers as the primary statistical tool, implemented via Excel, the study calculates individual price changes for Premium Motor Spirit , Automotive Gas Oil , and Dual-Purpose Kerosene , as well as the overall trend in aggregate Petroleum Products Prices . The year 2014 was chosen as the base period due to its relative global price stability and the absence of major geopolitical conflicts—unlike the current situation involving Russia and Ukraine, which are key exporters of wheat and petroleum. The analysis indicates that, overall, PPP increased by an average of 73.5% over the studied period relative to the 2014 base year. Specifically, the prices of PMS, AGO, and DPK rose by an average of 44.1%, 54.5%, and 183.7%, respectively. Trends were visualized and compared using bar and line charts. The findings clearly show that Kerosene experienced the steepest price increase at 183.7%, followed by Gas at 54.5%, and Petrol at 44.1%, all measured against the base year.

Keywords

Index NumberPetroleumPetrolGasKerosenePrice

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Index Number Analysis on the Change of Prices in Petroleum Products

Abstract

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