A kilogramme of cooking gas is being marketed for between N1,000 and N1,200 in some areas of the country, according to Daily Trust’s investigations, raising significant concerns about the escalating price of the fuel.
Additionally, there are worries that the price may increase further as a result of the product’s scarcity, which marketers attribute to a disruption in supply.
A kilogramme of cooking gas was sold for between N1,150 and N1,200 in Lagos outskirts like Mowe, Ibafo, and Magboro, among other places, along the Lagos-Ibadan Motorway in Ogun State yesterday, according to Daily Trust checks conducted across Lagos State. 12.5 kilogrammes of cooking gas are sold for N12,000 at some retail stations.
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Even though many customers had been waiting in line with their cylinders since the morning, the employees of a large retail establishment in the state told our correspondent that the goods was still expected.
Although a sign at the petrol station stated N8,500 for 12.5kg, the employee was unable to verify the current price and said it would not be known until the merchandise came.
Mrs. Suebat Ola, who travelled from Mowe, Ogun State, to Lagos to purchase the item, claimed that she did so because the pricing outside of Lagos was unaffordable.
“I came all the way from Mowe to fill my cylinders,” she said, “since it is sold at between N1,150 and N1,200 per kilogramme along our axis, which would be more than N12,000 for 12.5kg. The price is too high. I’m not sure how long we could afford to pay this much for cooking gas.
The majority of retail outlets have ran out of goods, according to our correspondents who visited several areas of Lagos yesterday.
Cooking was offered for N1,100/kg yesterday in several areas of Lagos Mainland, up from N750/kg last week, and many families and businesses have expressed alarm over the price increase.
There were lines at the main petrol stations our correspondent visited in Kano metropolis.
While some merchants were charging N880 per kilogramme, others were charging N950 and N1,000 instead of the standard N750.
Many households in the state were reportedly compelled to utilise charcoal as a result of the circumstance.
Vendors explained the increase as being caused by the high cost of transport due to the high cost of diesel.
Muhammad Omede, the state secretary for Liquefied Petroleum Gas Retailers of Nigeria (LIPGAR), also cited “the difficulties typically experienced by transporters due to poor road network, especially the Lagos-Kano road” as a contributing factor.
Some residents blamed the weak naira, a lack of bulk storage, and dispersed terminals among other things for the increase in petrol prices.
According to Chucks Okafor, a gas vendor in Oshodi, Lagos, cooking gas consumers may have to pay N1,200 by the end of the week.
According to him, the price of cooking gas is currently N1,100 per kg, with 3 kg and 6 kg costing N3,300 and N6,600, respectively. A 12 kg cylinder costs N13,200.
“Many customers are astonished by the pricing when they enter my business. Many people leave without buying anything. Although I am a retailer, I am also aware of their plight.
Lagos resident Mrs Adebayo Esther Aderonke remarked, “Cooking gas has turned into a luxury we can hardly afford. We used to prepare three meals a day, but we now need to eat less. It is depressing.
Famous restaurateur Chef Maya lamented the rise in cooking gas prices, saying: “Our menu prices have had to increase, and customers are noticing. Because of the growing costs, we worry about losing our regulars.
Marketers accuse supply disruption and foresee future growth.
Oladapo Olatunbosun, the president of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALGAM), urged the federal government to take proactive measures to stop the price increase in a conversation with Daily Trust.
He said that the vessel that was due to offload in the state had not done so, and that this was the cause of the gas shortage in some areas of Lagos.
According to the information at his disposal, it is difficult for Nigerians to obtain the goods.
He issued a warning that if the federal government did not stop the cost’s rise, the price of 12.5 kg of cooking gas may soon reach N18,000.
The amount that marketers used to purchase for N8 million, according to him, is now sold for N14.5 million.
As long as marketers continue to purchase the goods at outrageous rates, according to Olatunbosun, the price will increase.
He insisted that a concentrated effort be made to keep the product accessible to the average person.
“Visit the far North and the far east, and observe the conditions there. Because the price of purchasing at the terminal has increased at such a rapid rate, in certain regions people are purchasing at N1,300 per kg. Currently, terminals that once cost between N8 and N8.5 million are being sold for N14.5 million.
“The supply has also been epileptic in some way. The ship from NLNG made two trips to Port Harcourt, which is why there is a delay in Lagos. Two days ago, the ship returned to Lagos. They just unloaded it, and the weight it carried was not particularly heavy. It should arrive back in approximately a week.
The Federal Government of Nigeria, in particular the new Minister of Gas, is being urged to pay attention to LPG, thus we are taking this occasion to make that request. Everyone in Nigeria who needs petrol, both the young and the old, can use LPG.
And because the withdrawal of fuel subsidies is hitting people hard, electricity is not always available, and people can only cook with gas, it has turned into something they cannot afford, which means our forest will suffer as a result.
Therefore, we must consider the supply and the price that will soon be on the market. What pricing do they offer? What is the true cause of the price increase, and what part can the government play? Is that what intermediaries are for? Is that what the intermediaries are for? What is the real reason for the price increase?
He claims that while some attribute the increase to the current foreign exchange crisis, there is also evidence of profiteering.
The government must shine a spotlight on this situation, warn all participants, and hold frequent meetings with terminal operators and off-takers to discuss ways to protect Nigerians.
“The impoverished Nigerians are suffering; petrol is becoming increasingly expensive for Nigerians, making life difficult for everyone.
“We don’t like that, to be honest. As businessmen, we are feeling the effects of rising purchasing costs and rising operating expenses. Additionally, the product is not widely accessible.
In order to safeguard the underprivileged Nigerians and make petrol more inexpensive, the government must also focus on the main suppliers and off-takers while addressing the regular supply.
Nigerians might use firewood as a last resort, expert
Dr. Dauda Garuba, an expert in oil and gas, claimed that no country leaves its economy totally up to market forces.
“I am not surprised and I really believe that if you subject your economy to the full forces of the market, some of the sectors would inevitably interact. Whatever robs one will undoubtedly be robbing on another, he added, as long as the sectors are interacting with one another and are not thriving in isolation.
He claimed that many Nigerians could be forced to resume cooking with firewood, which would have an adverse impact on the environment.
According to Garuba, the ultimate goal is the return to firewood, which we are inevitably moving towards. We are also aware of the impact this will have on the environment, particularly with regard to the issue of pollution and other related issues.
“National security is involved in everything that has to do with energy. In a perfect world, the government would keep looking for answers to the problem. You may recall that some of these hikes were justified solely by the argument that the government has no place in the private sector. But have you also considered the fact that even governance is ineffective? Why not privatise government so that some of these politicians can retire to their homes and take a break?
Official: FG is collaborating with NLNG to increase supply
According to a representative of the Office of the Minister of State for Petroleum Resources (Gas), because the market was deregulated, there wasn’t much the government could do to stop the increase in the price of cooking gas.
Under the condition of anonymity, the official stated that the government was collaborating with Nigerian Liquefied Natural Gas Ltd (NLNG) to increase local supply and lower prices.
“The industry is wholly unregulated. Despite the suppliers’ best efforts, a number of variables, primarily deregulation, are at play. I’m aware that the government is collaborating with NLNG to figure out how to boost domestic supplies,” the man stated.
