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Business News of Monday, 20 November 2023


Nigerians disclose what they use as alternative to cooking gas as prices skyrockets

Cooking gas Cooking gas

Pascal Oparada has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy.

Liquified Petroleum Gas or cooking gas dealers have reported a sharp drop in demand for the product despite interventions by the Nigerian government.

Dealers disclose what consumers use in place of cooking gas

Gas dealers revealed over the weekend that demand for the product fell due to low income and consumers' poor purchasing power.

Punch reports that retailers confirmed that consumers' demand for the product declined sharply due to high inflation, which has pushed the cost of the commodity above the average household in Nigeria.

The sellers reportedly said most users no longer buy the 12.5kg, preferring to use the 5,6, or 3kg to save cost. Alternatively, they have turned to other energy sources, such as kerosene and charcoal.

Feelers from the market show that the prices of a 12.5kg cylinder now sell between N11,000 and N12,000, depending on the location.

Marketers confirm adequate gas supply

President of the Nigerian Association of Petroleum and Gas Marketers, Dapo Olatunbosun, revealed that although the Nigerian government, via the Liquified Natural Gas Limited (NLNG), recently ensured adequate supply of the product locally, the prices are still very high, leading to consumers abandoning the product.

According to Olatunbosun, the commodity's price has stabilized and dropped slightly.

He said: "Every depot is wet now. Supply is better. Price is stable at N16m per 20 metric tons- it could have been worse. But demand is falling amidst people's low income and poor purchasing power.

The development follows the disclosure by marketers that depot owners were to blame for the hike in the price of the product.

The marketers said 12.5kg could hit as high as N18,000 by December without care.