Abstract

Kerosene is a combustible hydrocarbon liquid which is distilled in modern refineries as one of the numerous products of crude petroleum oil. Its chemical characteristics make it a versatile product in usage. In Nigeria, it is the main fuel used for cooking and lighting especially by the majority of the poor citizens as an alternative to electricity and gas. Kerosene scarcity is a serious problem in Nigeria. Scarcity was caused mainly by; inadequate importation of the product and its diversion from domestic uses to other areas. Kerosene scarcity has led to kerosene adulteration which has become prevalent in Nigeria. Kerosene adulteration could be deliberate or inadvertent. Most kerosene adulteration was for economic gains. Kerosene subsidy has also encouraged kerosene diversion. Kerosene adulteration had been implicated in all the kerosene explosions that were recorded in Nigeria. Each time such explosion occurred, several persons were brought to death and several hundreds of victims were incapacitated or disfigured. The paper concluded that subsidy is injurious to the Nigerian economy and therefore recommended the removal of all petroleum product subsidies and the liberalization of all the downstream activities in the petroleum industry and that government should provide the enabling environment for the industry to thrive and attract private investors in the productive sector of the Nigerian economy.

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