“Price Will Crash”: FG Speaks as Cost of Cooking Gas Increases by 38% to N14,150

• In the last year, cooking gas costs have surged significantly to N14,150 for a 12.5 kilogram from N10,323.33
• Similarly, aviation fuel increased by 33%, from N1,000 to the range of N1,300 and N1,500 during the period
• Marketers have associated the high cost of gas with the instability of foreign exchange

Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.

The cost of cooking gas, also known as Liquefied Petroleum Gas (LPG), has increased to N14,150 for a 12.5 kilogram, representing a 38% year-on-year increase from the N10,323.33 it sold in April of the previous year.

This occurred at the same time that the cost of aviation fuel increased by 33%, from approximately N1,000 to N1,300 and N1,500 per litre on the domestic market during that time.

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According to a Vanguard report, the cost of 5kg of gas rose by 37% during that time, from N4,642.27 to N5,700.

Marketers speak

The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGM), President Oladapo Olatunbosun, stated in an interview that cooking gas prices will rise as long as the foreign exchange crisis persists.

He said:

“It is expected that when the foreign exchange increases, the price of LPG will follow suit because it is still priced and determined by the flow of foreign exchange.”

The Minister of Petroleum (Gas), Ekperikpe Ekpo, stated that low production and growing prices have continued to drive Nigerians away from using cooking gas, even despite the government's push to make gas a transition fuel and the announcement of the decade of gas.

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He stated that one aspect of this is the federal government's demonstration, which includes removing all taxes and levies connected to the importation of equipment related to gas, which is seen as a significant incentive.

He added:

“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.

He guaranteed that he would maintain regular contact with gas producers, such as Mobil, Chevron, and Shell, as well as the regulator, the Nigerian Midstream and Downstream Petroleum Regulatory Authority, since meetings are held nearly daily.

Further investigation revealed that many homes, particularly in rural and suburban regions outside of cities, have started using firewood more frequently, contributing to the country's deforestation.

FG set to crash cooking gas price

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Legit.ng reported that the federal government has engaged in discussions with key stakeholders in the petroleum sector to formulate strategies for cooking gas prices and their availability.

This followed a significant increase in the price of cooking gas from less than N500 per kilogram in 2018 to N1,300 in 2023. The development has left many lamenting the harsh economic realities in the country.

During the stakeholder consultation meeting in Abuja, Ekperikpe Ekpo, the minister of state for petroleum resources (Gas), announced his intention to lower the price of LPG in the nation and prioritise its uptake and reach.

Source: Legit.ng