Connect with us

Business

Nigerians lament as cooking gas price hits N1,300/KG, amidst high cost of living

Published

on

Nigerians lament as cooking gas price hits N1,300/KG, amidst high cost of living

As if the high cost of living and increasing hardships Nigerians face are not enough, Nigerians have now to grapple with new reality of increasing cost of cooking gas.

Nigerians across all divide, tribe and tongue have started lamenting as cooking gas price hits N1,300/KG

Many Nigerians spoken to by Business Hallmark are complaining, saying in the experience, they have not witnessed such difficulties as they are currently going through.

“We are strafed by mult dimensional insecurity, hunger, unemployment, increasing hardships over rising prices of basic commodities, now they have increased the cost of cooking gas. Do they want to kill us”, a trader who simply identified himself as David told Business Hallmark at Daleko market in Mushin.

This sharp increase, up from less than N500 in 2018, has sent jitters down the spines of many Nigerians.

Mohammed Haruna, a pepper seller at Alakuko told Business Hallmark that ” We thought we have seen the light when Tinubu won the election, this is treachery and betrayal of the hope of the people. Instead of a renewed hope which was the APC under Tinubu campaign mantra, this is hope betrayed. Unfortunate is the word. This administration is heartless, worse than Buhari’s.”

This view is echoed by Prekeme Dagogo, a transporter, who said ” I’m shocked to the marrow that this administration that campaign on the renewed hope has now turned into undertaker. So sad!”

Frustration and anger mixed with a sense of disappointment have seeped in into the consciousness of many Nigerians as citizens grapple with the rising cost.

“How can we cook?” lamented Tosin Adelakun, a Lagos resident juggling multiple jobs to support her family. “Everything is going up, but our salaries stay the same. Now even cooking basic meals is becoming a luxury.”

The price hike isn’t just a pinch, it’s a punch to the gut for many Nigerians who rely on LPG for their daily cooking needs.

Street food vendors, who depend on gas for their mobile kitchens, are facing reduced profits and difficult choices.

“We either raise prices and risk losing customers or cut corners on portion sizes, which hurts everyone,” said Anayo Okon, who sells cooked noodles at Oshodi, Lagos.

Although Nigeria boasts of over 200 trillion cbf of natural gas reserves which puts her among the top ten countries with the largest gas reserves in the world, low investment has resulted in her being an importer of LPG

Though experts are trying to explain the development in abstruse ways that common people can not understand, but they all agree that government could have done better.

Many of them point to the ongoing global energy crisis, while some others see the culprit in the devaluation of the Naira, which has pushed up international LPG prices.

It’s also widely believed that local dynamics like limited storage capacity and transportation hurdles are exacerbating the issue.

Advertisement

Olatunbosun Oladapo, the President of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), did not want to state the specific prices his members are encountering at the source.

“In the current situation, I can verify that the cost of cooking gas has risen,” said Oladapo. “The situation is very unfortunate because prices are rising and Nigerian consumers are struggling”, he told Business Day recently.

Dr. Olufemi Omoyele, an expert in natural gas, said the rise in the prices of cooking gas prices is a factor of demand and supply, as more demands are made, the price will continue to rise.

“ It must be noted that the lack of sufficiency in gas exploration investments and the unabashed theft of crude oil, which boils over in effect on associated gas production, have made the nation to shift towards an alternative solution—importing Liquefied Petroleum Gas (LPG),” Kunle said.

Adeola Adenikinju, a professor of economics and president of the Nigerian Economic Society said “The current inflationary pressure and skyrocketing prices of imported consumables have exacerbated by the Naira exchange rate to the dollar, making some of these imported items unaffordable by the masses”.

Nigeria’s Ministry of Finance in a letter dated November 28, 2023, said the President Bola Tinubu-led government aims to bring down the cost of cooking gas across the country, with the removal VAT and customs duty on the product.

The letter partly reads: “In line with His Excellency, President Bola Tinubu’s commitment to improving the investment climate in Nigeria, increasing the supply of LPG to meet local demand, reducing market prices and promoting clean cooking practices, I hereby affirm Presidential directive dated July 29, 2022, with reference number PRES/88/MPR/99.

“Accordingly, the importation of LPG utilizing HS Codes 2711.12.00.00, 2711.13.00.00 and 2711.19.00.00 is exempt from Import Duty and Value-Added Tax. Consequently, the Importation of LPG shall incur a 0 per cent duty rate and 0 per cent VAT rate, effective immediately.”

Instead of bringing down the prices as promised by this administration, the reverse has been the case.

News continues after this Advertisement
News continues after this Advertisement
Continue Reading
Advertisement
1 Comment

1 Comment

  1. MickyKarim

    February 7, 2024 at 5:38 pm

    PRICES SKYROCKETTING SIMPLY BECAUSE THE FUEL SUBSIDY ENJOYED BY A FEW WAS STOPPED FOR THE BENEFIT OF ALL, WHAT A COUNTRY!

    Nigerians are their own enemies.

    WHEN YOU ALLOW YOURSELF TO BE USED BY THE OPPOSITION TO CREATE UNECESSARY SCARCITY FOR INFLATION WITH RESULTANT UNAFFORDABILITY.

    We take instructions from bad evil wishers and blame government.

    BOOTLEGGING AT PLAY! BY SHENANIGANS.

Leave a Reply

Your email address will not be published. Required fields are marked *