Cooking Gas Prices in Nigeria: Skyrocketing to New Heights? – Nigerian households may need to brace themselves for even steeper cooking gas prices come December. Retailers have raised alarm bells suggesting that a 12.5kg cylinder of cooking gas could surge to a whopping N18,000, unless the Federal Government steps in to regulate terminal owners more strictly.
The Current Landscape
Olatunbosun Oladapo, the President of the Nigerian Association of Liquefied Petroleum Gas Marketers, revealed in an interview with The PUNCH that the price of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, has witnessed a dramatic increase. He pointed out that costs at the terminals have surged from a range of N9-N10m per 20 metric tons to an alarming N14m per 20 metric tons.
Oladapo expressed grave concerns: “The current trend in gas pricing is alarming. If the government doesn’t take swift action against the unchecked activities of terminal owners, we could see prices escalating to N18m per metric ton by December. This translates to a potential retail price of N18,000 for a 12.5kg cylinder.”
Behind the Price Hike
Delving into the reasons for this sudden spike, Oladapo criticized terminal owners for exploiting the situation under the pretext of high foreign exchange rates. He believes these owners are capitalizing on the situation, further adding to the plight of the common man.
While the Nigerian Liquefied Natural Gas Limited (NLNG) continues to supply the market, the price hike seems unjustified. “NNPCL currently procures 59% of the gas produced by NLNG. Although NLNG has increased its price recently, the subsequent price hikes by NNPCL and terminal owners are disproportional,” says Oladapo.
The Impact on Common People
The soaring prices are pushing many Nigerians towards more traditional cooking methods. Oladapo laments, “For many minimum wage earners, affording gas is now out of reach. People are increasingly turning to firewood and charcoal.”
He further expressed his disappointment with the terminal owners. “They met with President Tinubu just last week, promising collaboration for the betterment of the masses. Yet, here they are, increasing prices and not delivering on their promises of aid and support.”
Terminal Owners Respond
While gas terminal owners do not have a structured association, spokespersons from leading companies like NavGas and Nipco Plc weighed in on the issue. They attributed the price surge to forex challenges and the global crude oil price hike.
Friday Agwu from NavGas explained, “The price increase is driven by forex challenges and the rise in crude oil prices internationally.” Askay Kumar from Nipco Plc also echoed similar sentiments but refrained from commenting on specific landing costs.
The future of cooking gas prices in Nigeria hangs in the balance. As terminal owners and marketers play the blame game, it’s the common man who bears the brunt. The situation calls for immediate government intervention to ensure affordability and prevent further hardships for the Nigerian populace.
This post was last modified on September 18, 2023 7:34 AM