• Thursday, June 20, 2024
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Relief for households as cooking gas price falls to N900/kg

Here’s why Nigerians may pay more for cooking gas in festive period

Households in Nigeria are finally getting some relief as the price of Liquefied Petroleum Gas (LPG), also known as cooking gas, has fallen to N900 per kilogram (kg).

This represents a significant decrease from the previous price of N1,500, which had put a strain on many families’ budgets.

“The ban on LPG export has made a lot of changes in the market and consumers can testify to this,” Oladapo Olatunbosun, president of Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) while speaking at a meeting with Ekperikpe Ekpo, minister of state for Petroleum Resources (Gas).

On February 22, 2024, the federal government announced the immediate suspension of LPG exports to curb the rising cost of cooking gas.

Olatunbosun, in a statement released by the minister’s media aide, Louis Ibah, recounted that during a stakeholders consultative forum held in Abuja in February, the association had informed the minister that several international oil companies operating in Nigeria were exporting significant quantities of gas.

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He had made the point that if these quantities were available for the home market, there wouldn’t be a need to import LPG at astronomical prices because the product would be available and the local market’s prices would be stable.

Prior to the ban, cooking gas prices had skyrocketed to a staggering N1,500 per kilogram. However, Olatunbosun reported a significant drop to between N900 and N1,000 per kilogram following the export halt. This translates to a potential saving of N500 or more per kilogram for Nigerian households.

Olatunbosun commended Ekpo for his “courage” in implementing the policy.

He pointed out that NALPGAM had previously raised concerns, stating, “We had drawn the minister’s attention to the fact that some international oil companies operating in Nigeria had been exporting huge volumes of gas.”

Olatunbosun also noted a decrease in the wholesale price from N20 million to N15 million per 20 metric tonnes. This suggests a more stable and affordable supply chain for LPG throughout Nigeria.

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He highlighted that consumers who previously abandoned their gas cylinders due to high prices are now returning to this cleaner cooking option.

“People who abandoned their gas cylinders due to price hike are coming back,” he said, “and we are confident that by the time the naira gains more weight, consumers will enjoy better price of LPG.”

Ekpo acknowledged Nigeria’s paradox of being a major gas producer yet having low domestic consumption rates.

He reaffirmed President Bola Tinubu’s commitment to increasing gas accessibility across the country, stating, “We are working towards ensuring that our vast gas resources are available domestically at the right price for the public in line with President Bola Tinubu’s aspiration for the sector and economy.”

Ekpo praised the cooperation of gas marketers in adjusting prices to reflect the new market reality. He emphasized the government’s ongoing efforts to ensure Nigerians benefit from the country’s vast gas reserves, aligning with President Tinubu’s economic goals.