Effect of Petroleum Price Increase on Cost of Selected Building Finishing Materials in the Nigerian Construction Industry

Abstract

This paper was aimed at examining the influence of petroleum price increase on the prices of some selected finishing materials in Niger State from 2006 - 2012 in the light of high construction cost in the Nigerian Construction Industry. The data collected were based on three basic finishings materials, which are floor tiles, gloss/emulsion paints and ceiling boards, with different alternatives for each finishing material. Correlation and Regression Analyses used to analyze the collected data showed some level of high significance between the independent variable (regulated petroleum prices) and the dependent variables (finishing materials) i.e. Coefficient of Determination of values ranging from 61% to 90%. It was concluded that increase in the regulated price of petroleum products accounts for high cost of finishing materials in building projects. One of the recommendations from the study included the need for a better regulating price system to adequately monitor price with regard to building materials.