Cooking Gas Prices Could Soar to N18,000 by December, Warn Gas Retailers

Gas retailers in Nigeria are sounding the alarm, warning that the price of a 12.5kg cooking gas cylinder could reach as high as N18,000 by December if the Federal Government does not intervene and curb the activities of terminal owners. The President of the Nigerian Association of Liquefied Petroleum Gas Marketers, Olatunbosun Oladapo, expressed concerns over the skyrocketing prices of liquefied petroleum gas (LPG), commonly known as cooking gas, driven by a sudden increase in costs at gas terminals.

Oladapo revealed that prices at gas terminals have surged dramatically. Previously, a 20 metric ton container of gas sold for between N9 million to N10 million, but it has now spiked to N14 million per 20 metric tons. This unjustified price surge is a major cause for concern among gas retailers who fear that if left unchecked, the cost of a 12.5kg cooking gas cylinder could reach N18,000 by December.

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Terminal Owners and Foreign Exchange:

According to Oladapo, terminal owners are using the excuse of high foreign exchange rates to justify these price hikes, which are directly impacting the masses. He emphasized that there is no valid justification for such steep increases, especially considering that the Nigerian Liquefied Natural Gas Limited (NLNG) continues to supply the market.

Oladapo explained that the Nigerian National Petroleum Corporation Limited (NNPCL) currently acquires 59 percent of the gas produced by NLNG. While NLNG has also raised its prices from N6 million to N8 million, NNPCL and terminal owners have further increased prices to N14 million. This domino effect is causing gas prices to surge rapidly.

Impact on the Masses:

The consequence of these price hikes is that many ordinary citizens will struggle to afford cooking gas. Oladapo highlighted the increasing reliance on firewood and charcoal due to the prohibitive cost of gas. This situation directly contradicts promises made by certain stakeholders to collaborate with the government in improving the lives of the people through initiatives like the donation of palliative.

While gas terminal owners attributed the price hikes to forex challenges and fluctuations in the international crude oil market, it remains a contentious issue with gas retailers. Some retailers dispute the claimed prices, emphasizing the importance of transparency in the gas supply chain.

The steep rise in cooking gas prices in Nigeria is a cause for concern, particularly for the average consumer. As gas retailers voice their worries, the need for government intervention and industry transparency becomes evident. The impact of these price increases on daily life and household budgets underscores the urgency of addressing the situation to ensure that essential commodities remain accessible to all Nigerians.

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