It is not the best time for Nigeria households as the hardship occasioned by the economic crisis is compounded by the escalating price of Liquefied Petroleum Gas (LPG), otherwise known as cooking gas. Our recent checks show that the price of the commodity has risen to N14,150 for 12.5kg cyclinder, about 38 per cent Year-on-Year, YoY, against N10, 323.33 it sold in April 2023 last year.
This increase in price is despite government interventions aimed at making the product as cheap and available as possible. The federal government had earlier withdrawn all taxes and levies from importation of gas related equipment and even banned the export of gas produced in the country.
It was also discovered that the price of 5kg of the gas increased by 37 per cent to N5, 700 from N4, 642.27 during the period. Stakeholders believe the rise in price of cooking gas is as a result of the foreign exchange crisis.
President, Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGM), Mr. Oladapo Olatunbosun, said that it is expected that when the foreign exchange increases, the price of LPG will follow suit because it still priced and determined by the flow of foreign exchange.
On his part, the Minister of Petroleum (Gas), Ekperikpe Ekpo, said: “Despite the declaration of the decade of gas and the government’s push to make gas a transition fuel, low production and rising prices have continued to push Nigerians away from the use of cooking gas.
“You have seen the demonstration by the federal government by withdrawing all taxes and levies from importation of gas related equipment. It is a big incentive on the issue.
“We are interacting with the critical stakeholders to ensure that there is no exportation of cooking gas. All cooking gas produced within the country will have to be domesticated and when this is done, the volume will increase and of course, the price will automatically crash.
“I am in contact with the regulator, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), we have meetings almost on a daily basis, and the producers of the gas like Mobil, Chevron and Shell. So, there is hope that things will turn around.
“It is not going to reflect that way. We are dealing with human beings. The policy has been put in place and the investors want to maximise the profits that they are going to get from it all. At the end of the day we have to come in. That is why you have the regulator and we are interfacing with them to make sure they crash the price.”
However, further checks indicated that many households, especially in the outskirts of cities and rural areas have taken to increased utilisation of firewood, thereby encouraging deforestation in the nation.