More problems for households, others as cooking gas price surges

The price of Liquefied Petroleum Gas (LPG) has risen to N14,150 for 12.5kg cylinder, about 38 per cent against N10,323.33 it sold in April 2023 last year.

This is as the price of aviation fuel also increased to between N1,300 and N1, 500 per litre in the domestic market, from about N1,000 during the period, indicating an increase of 33 per cent.

The price of 5kg of the gas increased by 37 per cent to N5,700 from N4,642.27 during the period.

The President, Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGM), Mr Oladapo Olatunbosun has disclosed that the prices of cooking gas would continue to rise as the domestic market continues to be impacted by foreign exchange crisis.

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.”

The Minister of Petroleum (Gas), Ekperikpe Ekpo, added: “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.

“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.”

BEB