The price of cooking gas in Nigeria has increased significantly, causing concerns among consumers.
- Cooking gas prices have risen to N800 per kilogram.
- The Nigerian naira’s value has decreased, affecting the purchasing power of consumers.
- Calls are being made for government intervention and for prioritizing domestic needs over exports.
An Unexpected Jump in Price
Cooking gas, which many know as liquefied natural gas, has seen its prices rise significantly in recent times. Just a short while ago, there were discussions about a potential increase. Now, the current price stands at a whopping N800 per kilogram, as per recent research.
Why the Increase?
Several reasons have led to this situation:
- International Prices: Globally, the cost of several commodities, including gas, has been on the rise.
- Taxation: High tax rates have played a role in the increment.
- Cost of Vessels: The prices related to shipping and transportation have also influenced the price.
- Forex Shortage: The lack of foreign exchange availability has been a significant factor. Check CBN Official Rates of Naira to Dollar
- Naira’s Value: A crucial reason is the decline in the value of Nigeria’s currency, the naira. It recently hit a record low of N945 per dollar in black market, widening the difference between official and informal market rates. Since the Central Bank of Nigeria allowed the naira’s value to fluctuate in June, it’s been under stress.
Local feedback supports these findings. Osuji Chidinma, a Lagos-based businesswoman, shared her personal experience. She purchased a 13kg gas cylinder for N8,950 not long ago. Now, that same amount costs N10,400, an increase she finds challenging to bear.
Reactions from the Market
Key stakeholders across the supply chain, including the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), have acknowledged this price surge. The Association’s President, Olatunbosun Oladapo, confirmed the increase. While he did not specify the current purchasing price from suppliers, he highlighted the situation’s unfortunate nature.
Wholesalers like Stoke Energy Gas and Lite Gas remarked on the price adjustment. Previously selling gas between N550 and N600 per kilogram, they’ve now had to adjust due to the rising costs caused by dollar scarcity.
The Impact on Business and Consumers
The higher gas prices are affecting everyone, from businesses to end consumers. With decreased purchasing power due to the declining naira, the overall business sentiment is low. This scenario is affecting everyone’s pockets.
What’s more, many Nigerians are now turning to alternative cooking methods. With gas becoming pricier, they’re resorting to firewood, charcoal, or sawdust. This shift is not only a matter of choice but also a sign of the tough times the average Nigerian is going through.
Calls for Change
Oladapo has called for several changes to address this crisis:
- Government Intervention: He stresses the need for a dedicated minister to oversee the sector and find solutions.
- Financial Assistance: There’s a call for the government to offer financial aid or “palliatives” to help ease the public’s burden.
- Tax Reduction: Reducing taxes and levies can provide some relief to consumers.
- Domestic Over Export: There’s an emphasis on catering to domestic requirements before thinking of exports.
Furthermore, Oladapo believes that local sellers who can procure their products within Nigeria should set their prices keeping the hardships of the common people in mind.
In conclusion, while the soaring gas prices are causing a considerable stir and challenges in Nigeria, there are calls for changes from different quarters. It remains to be seen how the government and stakeholders will address these concerns in the coming days