Cooking Gas Price in Nigeria Skyrocket on October 27, 2023: What It Means for Consumers and Businesses
Marketers have let the cat out of the bag about an undercover group alleged to be pulling the strings on the sharp price rise of cooking gas in Nigeria. Within just a month, the price of cooking gas has skyrocketed by a staggering 66%, reaching a high of N1,200 per kilogram, leaving many Nigerians struggling to afford this essential commodity.
Those at the business end of the gas terminals are pointing fingers at the falling foreign exchange rate and rising global market prices. But wait, there’s more to it! Some investigative dirt-digging has brought to light the possible role of terminal owners in this price hike. And the kicker? Many of these profit-hungry folks aren’t even Nigerian citizens. Truly, a plot thicker than yesterday’s soup!
According to a market survey conducted by Punch, the cost of 20 metric tonnes of cooking gas at the terminal was initially N10 million at the beginning of October. Shockingly, this price skyrocketed to N14 million for the same quantity by October 20, highlighting the rapid and significant price increase that has taken place.
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Adding to the alarm, a circular from a marketing manager at Algasco/NAVGAS revealed that the price soared to an astonishing N16 million per 20 metric tons as of Saturday, October 21, 2023. This represents an alarming 66% price hike within just one month.
The circular stated, “Effective immediately, Ex-Navgas price is N800,000/mt. This is because of the continuous depreciation in FX & increase international. Payment made after this communication will be recapped at the new price.”
Contrary to the claims of terminal operators, further investigations by Punch suggest that the Nigerian Liquefied Natural Gas Limited (NLNG) supplies approximately 70% of the cooking gas used in Nigeria. With Nigeria’s LPG (Liquefied Petroleum Gas) industry estimated to be worth $10 billion, it is growing at one of the highest rates globally.
Nigeria’s annual per capita LPG usage has increased from 1.8 kg in 2015 to 5 kg in 2021, signifying the growing importance of cooking gas in the country. The Petroleum Products Pricing Regulatory Agency reported that in 2020, domestic cooking gas consumption surpassed one million metric tonnes for the first time in the country’s history.
The investigation by Punch also uncovered that NLNG currently charges N9 million for the sale of 20 metric tonnes of cooking gas to marketers. Oladapo Olatunbosun, the President of the Nigerian Association of Liquefied Petroleum Gas Marketers, confirmed these findings, casting doubt on the claims made by terminal owners.
Olatunbosun said, “Terminal owners did not import any product, so how could they attribute this round of increase in prices to FX and price at the international market? I can authoritatively tell you that the last consignment they sold was supplied by NLNG, and another consignment from NLNG is currently on the way to be delivered to the terminal.”
He added, “Depot owners want to impoverish Nigerians and want to make the government look bad. Now the retail price has reached N1,200 per kilogram. How can the common man survive this? This is pure exploitation because as soon as they even make the money; they would ship it out of Nigeria because they don’t have their families here. They are foreigners who just use Nigeria as an avenue where they can make quick money and send it to their countries for investment.”
This revelation has ignited concerns about the fairness of pricing and the need for greater transparency in the cooking gas market in Nigeria. As citizens grapple with the soaring cost of this essential resource, it is clear that more scrutiny and action are needed to address the root causes of this sudden price surge.
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FAQs – Cooking Gas Price Surge in Nigeria
1. What caused the significant increase in the price of cooking gas in Nigeria?
- The price of cooking gas in Nigeria has surged due to a combination of factors, including the depreciation of the foreign exchange rate and rising international market prices. However, an investigative report suggests that terminal operators may be exploiting the situation.
2. How much has the price of cooking gas risen in just one month?
- Within a single month, the price of cooking gas has increased by a staggering 66%, reaching N1,200 per kilogram in Nigeria.
3. Who is responsible for the surge in cooking gas prices?
- Terminal operators have been blamed for the price surge, as they are believed to have raised prices significantly. It has been revealed that many of these terminal owners are not Nigerian citizens.
4. How does the Nigerian Liquefied Natural Gas Limited (NLNG) factor into this situation?
- NLNG supplies approximately 70% of the cooking gas used in Nigeria, playing a crucial role in the market. The investigation found that NLNG charges N9 million for the sale of 20 metric tonnes of cooking gas to marketers.
5. What concerns does this situation raise, and what is being done about it?
- The situation has raised concerns about pricing fairness and transparency in the cooking gas market in Nigeria. It is imperative that authorities and stakeholders address the root causes of this sudden price surge to ensure the accessibility and affordability of cooking gas for the people of Nigeria.