By Osinachi Gift Mar, 29, 2022 Private

Sequel to the alarming rate, at which the price of goods and services has sky rocked globally.  The Nigerian economy is not left out in this global hardship, the price of cooking gas has also increased.

The cost of buying12.5kg cylinder of household cooking gas in Nigeria has risen to N8,500, as of March 28, 2022, from N7,000 documented in September 2021. A cursory stare at the data reveals that the price rose to its biggest point in over three years. Precisely, a 12.5kg cylinder of household cooking gas intensified to its elevated since November 2018.

What consumers are asserting

This was confirmed by an analyst after supervising talks with vendors and customers, who lamented over what they narrated as a developed hike in the price of Liquified Petroleum Gas (LPG), typically recognized as cooking gas, across primary cities in Nigeria.

According to them, the price of gas is a primary concern because most households use gas cylinders. They added that they may decide to use charcoal for cooking.

Another consumer in Lagos, Glory's name, told Nairametrics that she refilled her 12.5kg cylinder with N7,000 on Thursday. According to her, the surging cost of gas will have a drastic effect on the average Nigerian and one of such is the cost of cooking gas. 3I was not surprised when the attendant told me the price because I had said in July that the cost will rise further. I had no option but to purchase it, as other options are not options for me. I would not have felt it much if the power supply was regular,” she said.

What you should know

The National Chairman of Liquefied Petroleum Gas Retailers Branch of NUPENG, Mr Chika Umudu, stated that the price hike was a result of the country’s massive dependence on the importation of LPG.

According to him, Nigerian LNG Limited, which accounts for extra than 40% of the LPG supply amounts in the country, should be providing the household market by the craving, rather than having a fixed quantity per annum.

Energy experts had communicated concerns over Nigeria’s incapacity to exacerbate the penetration and utilization of LPG in the country despite theoretically being in a position to generate sufficient LPG to meet local demand.

Recall that in September 2021, oil marketers under the censorship of the Major Oil Marketers Association of Nigeria (MOMAN), protested the Federal Government’s reintroduction of Value Added Tax (VAT) on imported LPG.

They asserted that the beginning of VAT to the already huge price of gas which is primarily imported due to the international gas difficulty will neutralize the government’s technique on the adoption of LPG.

The organization, in the downstream sector of the oil industry, inquired the federal government to nullify its decision by removing the 7.5% VAT on the product, warning that the fee will inhibit the adoption of gas in the country and establish a deterrent to the goals of the ‘Decade of Gas’ agenda of the government.

Conclusion

The endless hike in the price of cooking gas coupled with the dwindling purchasing power of the typical Nigerian does not augur well for the constant adoption of LPG by both rural and urban dwellers, and it is outrightly inefficient to the government’s widely publicized LPG policy.

Considering that LPG is environment-friendly, convenient, and stable, there is a requirement for government intervention to make the product more accessible to Nigerians.

Tags: LPG Cooking Gas Nigerian economy Cooking Gas price price of cooking gas

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