News

Nigerians Worry As Cooking Gas Price Soar

  • Cooking gas price in Nigeria have surged by 38% Year over Year.
  • The increase is attributed to the foreign exchange crisis impacting the market.
  • Government officials are engaging with stakeholders to stabilize domestic prices.

Eko Hot Blog reports the cooking gas price for a 12.5 kg cylinder has risen to N14,150, about 38 percent Year over Year, against N10, the 323.33 it sold in April 2023 last year.

Editor’s Pick

Subsequently, the price of aviation fuel climbed to between N1,300 and N1,500 per litre in the domestic market, up from approximately N1,000 during the same period, reflecting a 33 percent increase.

In an interview with Vanguard, the President of the Nigerian Association of Liquefied Petroleum Gas Marketers, NALPGM, Oladapo Olatunbosun, said the prices of cooking gas would continue to increase as the foreign exchange crisis continues to impact the domestic market.

He said: “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.”

Additionally, the Minister of Petroleum (Gas), Ekperikpe Ekpo, mentioned that the price of cooking gas would naturally decrease if key stakeholders refrain from exporting it.

Ekpo reassured Nigerians that there will be a turnaround, stating that he is presently engaging in discussions with the regulator, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

He 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, NMDPRA (Nigerian Midstream and Downstream Petroleum Regulatory Authority), 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.

Further Reading

“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,” he concluded.

Click here to watch our video of the week

 

 

 

 

Stephen Abulogbon

Share
Published by
Stephen Abulogbon

Recent Posts

Federal Government to Implement Tax Waiver on Drugs from January 2025

The Federal Government has announced that it will fully implement a tax waiver on drugs…

2 minutes ago

Stampede At Oyo Funfair: Organisers Arrested As Death Toll Rises

A tragic stampede at a children’s funfair in Islamic High School, Basorun, Ibadan, Oyo State,…

3 minutes ago

NIMR Seeks Alternative Energy as Electricity Costs Hit ₦218 Million

The Nigerian Institute of Medical Research (NIMR) has expressed concern over its high electricity costs,…

21 minutes ago