Cost of Cooking Gas Increases Again, Hits New Record as Dollar Sells for N1,500
- The price of cooking gas increased significantly during the weekend from N12,000 to N14,000
- Given the ongoing uncertainty surrounding the currency rate, there are signs that the price may rise much higher
- Nigerians expressed their displeasure with the continuous rise in the cost of cooking gas and other commodities
Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.
The price of a 12.5 kilogram of Liquified Natural Gas (LPG) hiked from N12,000 to N14,000 over the weekend.
Source: Getty Images
However, there are indications that the cost may increase to reach N16,000 due to ongoing concerns about the exchange rate.
Industry stakeholders have attributed the potential hike to the current exchange rate, which hovers around $1 for N1,500 in the unofficial market.
Consumers lament hike in gas cost
Nigerians are not happy with the increase in cooking gas costs. They lamented that cooking gas was becoming a product of the elites and out of reach for the common man.
Shade Maruf explained that the escalating cost has become unbearable for her, as her family of four depends on it
She said:
“Imagine the cost of rice has increased significantly in the last couple of days that we now do budgeting to buy it. The same thing applies to other foodstuff. And now the cost of gas? The government should be considerate. We are suffering in this country."
Faith Uka also lamented the increasing cost of cooking gas and how the electricity has not been helping matters.
“No one would complain if the gas was costly and electricity was stable. But we have no power, costly fuels, increasing food items, FX problems, etc. This is too much at a time.”
Who's to blame rising gas price?
Chika Umudu, the former chairman of Liquefied Petroleum Gas Retailers Association (LPGAR), attributed the development to the country's current forex challenges.
According to Umudu, a larger amount of cooking gas was still being imported into the country; hence, the LPG sector was not insulated from the forex volatility.
He said this means that if the country fails to domesticate its huge gas potential for local use, the local market will always be at the losing end.
He also alleged that some cabals within the LPG value chain had hijacked the sector, with many making as much as 100 per cent profit margin.
Shina Adebo, the managing director of Tweety Nigeria Limited, also noted that the cooking gas business landscape has become toxic and frustrating.
A few days ago, he said that 20 metric tonnes of LPG was sold for N16 million, but at the moment, it sells for N21 million.
He blamed the fast-eroding value of the naira and the exchange rate fluctuation for the sharp rise in the cost.
He also lamented that the operating cost of business keeps rising with the exchange rate, causing many to abandon the company for other trades.
Meanwhile, in a recent report, Ekperikpo Ekpo, the minister of petroleum resources, met with stakeholders to discuss the rising cost of cooking gas.
He raised concerns on the need to reduce the cost of cooking gas and prioritise its adoption.
He said:
“We will prioritise the domestication and p*netration of LPG and implement measures to significantly reduce the price of cooking gas for our people, ensuring it becomes more accessible, available and affordable for our citizens.”
In an earlier report by Legit.ng, marketers spoke on cabal behind the rising price of cooking gas in Nigeria.
Cost of cooking gas increases again
Legit.ng also reported that the National Bureau of Statistics (NBS) revealed that Nigeria's average price for refiling a 5kg cooking gas cylinder hit N4,828.18 in November 2023.
This represented a 5.82% increase compared to the N4,562.51 average price recorded in October 2023.
While on a year-on-year basis, cooking gas prices increased by 6.13% from N4,549.14 in November 2022.
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Source: Legit.ng
