Abstract
This research examined the analysis of index number on Premium Motor Spirit (PMS) and Dual Purpose Kerosene (DPK) to accenting the changes that occurred in the prices of PMS and DPK from 1998 to 2017 using Simple Relative Price Index, Laspeyres Price Index, Paasches Price Index and Fishers Price Index price with a view to determining the difference between them, the data collected were of secondary source from the central bank of Nigeria and National Bureau of Statistics bulletins 1998 to 2017. The variables used were pump prices of premium motor spirit commonly called petrol and Dual Purpose Kerosene (DPK) commonly referred to as Kerosene. A comparison of the various price indices show that about 1318.18% change has occurred in the prices of PMS from the base year and Price of DPK popularly known as kerosene in Nigeria had increased by 4333.33% from 1998 to 2017, the four methods of index numbers used gave the same result for the price of PMS and DPK within the studied period. This study therefore recommends among other things that government desist from undue interference in the prices of petroleum products since the fuel subsidy has been totally removed as claimed. This will make the forces of demand and supply as well as competition comes in to play in other for natural price reduction that will enhance industrial development in manufacturing and small scale businesses in Nigeria. Keywords: PMS, DPK, Index numbers, Petroleum products, Price.
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