Premium Motor Spirit (PMS) pricing and inflationary dynamics in Nigeria

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...

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Veröffentlicht in:Forum Scienciae Oeconomia (Online) 2020, Vol.8 (3), p.49-60
Hauptverfasser: Wale-Awe, Olawale Isaac, Sulaiman, Luqman Adedamola
Format: Artikel
Sprache:eng
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Zusammenfassung: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.
ISSN:2300-5947
2353-4435
DOI:10.23762/FSO_VOL8_NO3_3