How does Kerosene compare?

: Kerosene price parity.

kerosene comparisonThe figure shows that the market dynamics of kerosene are similar to LPG, as it also a fossil fuel that generally relies on international supply chains. Kerosene is also often subsidised as a key HH fuel for lighting, heating and cooking, however with the WHO’s reclassification of kerosene as a ‘polluting fuel’, this is expected to change. It is likely that with the right political support, many of these kerosene users will transition to LPG, as occurred with Indonesia’s government lead upgrade of kerosene dealerships (Puzzolo et al. 2016). Zambia appears to present a significant opportunity in Figure 23, as prices are high and grid electricity is cheap, however Figure 24 reveals that there is in fact almost nobody cooking on kerosene. A variety of Asian and African countries, such as Bangladesh, Vietnam, Malawi and Tanzania sit just above the parity line, showing that if any existing subsidies were removed, or the broader electrification benefits of eCook were taken into account, these markets could transition. Figure 24 shows that Nigeria, India and Indonesia represent the largest kerosene markets, but significant subsidisation puts them far away from the transition line. However, both the Indonesian and Indian governments are looking to transition away from kerosene, so this may change in the near future.

Countries coloured by region: AIMS, Central Africa, Central America & Caribbean, Central Asia & North Korea, East Africa, Europe, India & China, Middle East , North Africa, Pacific Islands & PNG, South America & Mexico, South Asia (excl. India), Southeast Asia, Southern Africa  and West Africa. Two-letter country codes listed in the GMA report Regional colour coding and two-letter country codes.

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s