Premium Motor Spirit (PMS) pricing and inflationary dynamics in Nigeria
Premium Motor Spirit (PMS) pricing and inflationary dynamics in Nigeria
Author(s): Olawale Isaac Wale-Awe, Luqman Adedamola SulaimanSubject(s): Economy
Published by: Wydawnictwo Naukowe Akademii WSB
Keywords: PMS pricing;crude oil price;inflation;Monetary Authorities
Summary/Abstract: The study examines the effect of PMS pricing on inflationary dynamicsin Nigeria between 1980 and 2018. Inflation was usedas the dependent variable for the study, while the prices of PMS(Premium Motor Spirit, simply called petrol), AGO (AutomotiveGas Oil, simply called diesel), and DPK (Dual Purpose Kerosene,simply called kerosene), as well as the exchange rate, were usedas independent variables. The study employed the ARDL andcausality techniques for analysis. It was discovered in the studythat the price of PMS increases inflationary tendencies in thecountry. Meanwhile, the causality test revealed the absenceof causality between PMS pricing and inflationary dynamicsin Nigeria. Thus, the study recommended that the governmentshould stabilise the price of PMS and align it with the wage rate.
Journal: Forum Scientiae Oeconomia
- Issue Year: 8/2020
- Issue No: 3
- Page Range: 49-60
- Page Count: 12
- Language: English