The Impact of Kerosene Pricing on Alternative Sources of Energy in Ibadan Metropolis Udoffia,

This study was conducted with the central aim of ascertaining the socioeconomic impacts of kerosene (paraffin) pricing on alternative sources of energy in Ibadan, a city in South West Nigeria. Data were collected through a survey of residential properties in Ibadan metropolis. Both descriptive statistics and multinomial logistic regression model were used for the empirical analysis. The models were used to analyse the socioeconomic variables of the household preference for cooking. The variables included sex, marital status, employment status, and income level as well as expenditure pattern on fuel. The descriptive analyses showed that affordability, efficiency of fuel type were the major factors that made the respondents to prefer kerosene to other sources of fuel. The multinomial logistic analysis showed that income is the major determinant for the choice of fuel type and this determines their spending pattern on fuel type selected. However, as the price of kerosene increase, individuals are compelled to opt for less efficient fuel like charcoal, and firewood. This therefore confirms the fact that income plays major role in the choice of fuel type in the study area. Thus improvement of income of respondents would largely influence the spending pattern and shift from less efficient fuel type to more efficient fuel. Keyword: Fuel, Kerosene, Energy, Determinant, Household, Income JEL Classifications: D12, N7, O13, P28, R32.