Cooking gas scarcity hits Lagos, Kano, Katsina, and other areas, leading to an impending hunger crisis

Cooking gas, also referred to as liquefied petroleum gas, is in low supply in Lagos and other regions of the nation.

Our correspondents report that Katsina, Sokoto, Delta, Kaduna, and Kano are among the other states impacted.

Since the end of last month, the price of the commodity has been continuously rising, which has led to an increase in pricing.

It was previously reported that the operators of petrol terminals raised prices by 66% in October alone. Even though NLNG is now providing 20 metric tonnes of cooking gas to them at a cost of N9 million, the price of 20 metric tonnes of cooking gas increased from N10 million at the beginning of the month to N16 million as of late last month.

According to a market survey conducted over the weekend by The PUNCH, 12.5 kg of cooking gas is currently sold on the underground market for between N13,500 and N14,000.

Due to a lack of supply, a few traders said that gas plant owners now sell to them for between N1100 and N1200 per kilogramme.

A kilogramme of 12.5 kg cost about N8, 700 as of June. Prices increased to N10, 200 in September and, as of this past Saturday, were back up to N13, 500–N14, 000.

It was discovered that Lagos state now lacks sufficient cooking gas in a conversation with Oladapo Olatunbosun, President of the Nigerian Association of Liquefied Petroleum Gas Marketers, on Sunday.

“At my own gas factory, I charge N950 for one kilogramme. Therefore, since they will also increase their profit, the general public should make every effort to avoid doing business with those that do not have gas plants. These folks are also contributing to the issue the nation is currently facing.

Cooking gas shortages were also reported by our journalist in Katsina.

The results show that the scarcity was initially noticed roughly two weeks ago when a number of small retailers expressed dissatisfaction over their non-availability. Additionally, research has revealed that the price of a kilogramme of cooking gas in the state is exactly N1, 400. The scarcity has no official explanation.

In recent days, Sokoto State’s capital has also reported a shortage of cooking gas, which has resulted in a random price increase.

As of Sunday, locals were seen in Kaduna with their cylinders in quest of the product, according to our correspondent there. The results indicated that a five kilogramme retail price was N5, 500.

Our correspondent in the adjoining state of Kano revealed that rush purchase of the commodity has caused a resurgence of the scarcity of cooking supplies.

According to a research by The Punch, retailers have hiked rates after the shortage surfaced again. A kilogramme of cooking gas is currently sold for N850 in certain filling stations, while it is offered for between N900 and N950 in others.

However, the majority of filling stations that dispense the item today frequently have lengthy lines of customers.

The pricing range for other retailers (the black market) is N1,110 to N1200 per kilogramme.

READ ALSO: According to FG, Nigerians can purchase CNG for gas-powered cars at N230/KG.

According to our correspondent’s investigations conducted in the Delta State metropolises of Warri and Effurun, the cost of cooking gas has skyrocketed to N1,100 per kilogramme as of Sunday, November 5, 2023.

In the twin cities, the item was retailing for N800 per kg in October.

Mr. Igho, a well-known petrol merchant in Warri, was unable to provide an explanation for the price hike when pressed.

When reached, a representative from the Nigeria Gas Company’s public communications department, Warri, requested anonymity because he was not permitted to communicate with the media and refused to comment on the matter.

He informed our correspondent, simply, “It is not my position to engage the press the way the new NNPCL is structured.”

Although prices are still high, studies from Abuja and Kwara revealed that consumers are not facing scarcity.

While there was no shortage of cooking gas in the area, Roy, a resident of Karu in the AMAC Area Council of Abuja, said our correspondent that the pure and liquefied gas he experienced was no longer as long-lasting.

Thus, the issue I’m facing is that it liquefies. Therefore, for whatever you purchase, you wind up with roughly 70% gas and 30% liquid within the cylinder instead of the regular gas.

Therefore, until we discovered that the liquid half was constantly left underneath when we shook the cylinder, we were not even aware of it. Therefore, it finishes two or three weeks earlier than it should, according to him.

While cooking gas was not in short supply, Sandra, another resident, informed our correspondent that it was becoming more costly.

“Today, I went to Abacha Road in Mararaba to get petrol. N13,500 for 12.5 kilogramme. She remarked, “I wouldn’t say there’s a shortage; I’d say it’s just gotten more expensive.”

Cecilia, a resident of Kubwa, agreed, saying, “It’s not scarce in my area—there’s just a price increase.” Last Wednesday, I paid N1000 for each kilogramme. Furthermore, it doesn’t endure as long as it formerly did.

However, Punch’s investigation in Kwara revealed that the product is offered in the majority of petrol stations.

A trader named Chief Sunday Oladele, who has an outlet at Gaa Odota in Ilorin, informed a Punch correspondent that petrol was available at his location and that a kilogramme was being sold for N1,200.

There is cooking gas in the state of Kwara. I sell it at my outlet for N1,200 per kilogramme. In Kwara, we have not encountered scarcity. Additionally, petrol is available at my other location in Ogbomoso, Oyo state, where it is priced at N1,100 per kilogramme.

According to Olatunbosun, the Nigerian Liquefied Natural Gas Limited presently provides 70% of the cooking gas used domestically.

According to some estimates, Nigeria’s LPG industry is expected to be worth $10 billion, expanding at the highest rate in the globe. The country’s annual per capita LPG usage increased from 1.8 kg in 2015 to 5 kg in 2021. The Petroleum Products Pricing Regulatory Agency reports that in 2020, domestic cooking gas consumption surpassed one million metric tonnes. According to the report, the rate of consumption in 2020 was the first time in the history of the country that LPG consumption above the 1 million MT threshold.

Olabosun further stated in our communication that if gas plant owners hadn’t voiced their concerns about price increases, cooking gas costs would have risen even further, from N16 million for 20 MT to N18 million.

Indeed, if not for the commotion we have been creating, prices would have skyrocketed even farther than they have. But ordinary petrol plants are starting to see a decrease in pricing. It will keep falling and shouldn’t be more than N1000 per kilogramme, the speaker continued.

In response to growing prices, the Nigerian Midstream and Downstream Petroleum Regulatory Authority was called in by the Federal Government, a source told our publication on Sunday.

“In October, the Federal Government called the NMDPRA back to action and reaffirmed its mission to restore order to the market. Thus, if everything else remained the same, cooking gas prices would start to decline soon, the unnamed source—who was not permitted to comment on the subject—told The Punch on Sunday.

Olatunbosun had issued a warning in September, stating that if the FG did not intervene to stop the terminal owners’ actions, the price of 12.5 kg may increase to N18,000 by December.

“There is currently an absurd increase in petrol prices, and I fear that by December, prices could rise as high as N18 million per metric tonne if the federal government does not intervene to stop these terminal owners’ operations. Accordingly, a 12.5 kilogramme might cost up to N18,000,” he said to The PUNCH.

He added that there was no need for the hike and that terminal owners were “hiding under the guise of high foreign exchange to increase price to further increase the suffering of the masses.”

However, terminal operators refuted our claims and pointed the finger at growing costs associated with foreign exchange and rising crude oil prices.

(Punch)