Nigerians sigh as the price of cooking gas continues to rise

The increase in the price of Liquefied Natural Gas, or LNG, more popularly referred to as cooking gas, was given to Nigerians as a gift for the nation’s 63rd independence anniversary. Even though the majority of people were not in the mood to celebrate after the multitude of socioeconomic problems that have been plaguing the nation, even a handful of those who wanted to commemorate the event were taken aback by what happened.

It has been a couple of months since the price of the necessary good has been fluctuating, which has added further suffering to the lives of Nigerians, particularly the regular people, who have realized that using LPG for cooking is safer, easier, and quicker than the traditional method of using firewood or charcoal.

By the end of September, a 12.5 kilogram cylinder of cooking gas could be purchased in Lagos for anywhere between N9000 and N10,000 depending on the store where it was bought. However, in the beginning of October, the price jumped to an astonishing N12,500.

The recent development has caused a great deal of worry and concern among a great number of Nigerians. This is especially true when compared to an earlier warning issued by the President of the Nigerian Association of Liquefied Petroleum Gas Marketers, Olatunbosun Oladapo, who stated that the price of 12.5 kilograms of cooking gas could reach as high as N18,000 by the month of December if the Federal Government did not checkmate the activities of the terminal owners.

He replied, “Yes, the price is now N1,000 per kilogramme, but the government has not yet stepped in, despite a meeting we had with the NMDPRA.” “Yes, the price has increased to N1,000 per kilogramme.”

In an interview with NAN, Oladapo expressed his displeasure with the fact that gas retailers continue to purchase 20 metric tonnes of gas for N14 million at the depot.

“We still purchase a 20 MT truck at the depots for the price of N14 million. In addition, the cost of diesel has skyrocketed, to the point where it now costs N1.7 million to transport gas from Lagos to Northern Nigeria. This is due to the fact that diesel is so expensive. Just try to fathom how much more expensive it would be in the East and North of the country if we sold it here for N1,000 a kilogram.

He stated, “We pray for the prices to come down so that the ordinary masses can benefit from the decade of gas policy of the Federal Government, which seeks to make gas accessible and affordable for the common man.” “We pray for the prices to come down so that the ordinary masses can benefit from the decade of gas policy of the Federal Government,” he said.

In September, there was a story in the media about how the owners of the terminal had jacked up the price of cooking gas from between N9 million and N10 million per 20 metric tonnes to N14 million. The price increase was due to the fact that the terminal owners wanted to make more money.

“Gas prices are going through an absurd increase at the moment, and I am afraid that if the Federal Government does not step in to checkmate the activities of these terminal owners, the price could reach as high as N18 million for a 20 metric tonnes truck by the end of the year. This is a real possibility.” This indicates that a 12.5-kilogram item may trade for as much as N18,000, according to Oladapo’s statement.

He bemoaned the fact that the proprietors of the terminals were using the pretext of a high foreign exchange rate to hide their desire to raise prices, which added insult to injury for the general populace.

However, Nigerians have been reacting to the issue, with some individuals arguing that the fallout of this unsightly trend would add to the already impoverished lives of the ordinary people and put the environment in risk if the government did not intervene promptly.

Those who subscribe to this point of view have maintained that when the general public is no longer able to afford the cost of cooking gas, they will revert to the usage of firewood, which will inevitably result in an increase in the number of trees that are chopped down for this purpose.

They also stated that this would have an effect on the local ecology since some wild creatures, such as bears, whose natural habitats are dense woods, would be put in danger of being hunted down if the trees that give refuge to these animals were cut down for firewood.

However, many people continue to place blame for the development on the elimination of the fuel subsidy, which, in their view, has resulted in an increase in the price of nearly everything, including the price of cooking gas.

During the course of looking into the matter, the former national chairman of the Liquefied Petroleum Gas Retailers Association of Nigeria, Chika Umudu, stated to the furucinovel that he believes the most recent increase in the price of LPG can be attributed to three primary issues.

According to him, just one of the three components is basic, while the other two are considered to be modern factors.

He ascribed the basic issue to the government’s inability to design a sustainable policy for the development of the country’s gas infrastructure, particularly the LPG. He emphasized that this incapacity was the primary factor.

“In my own perspective, the statements made by the government over the past ten years have been nothing but bluster. I have been clear that every policy that has been proposed in this context is a phantom policy, and I have reiterated this point numerous times.

“As a stakeholder, I have come to the realization that a policy will come into effect, and you won’t see anything on the ground to suggest that there is a dedication towards that policy.

“And sometimes it appears that some commercial interests are imposing their business models on some people in the public sector in disguise of national interest as regards the LPG,” he said. “And other times, it appears that some commercial interests are imposing their business models on some people in the private sector.”

He also mentioned that the actions taken by marketers over the course of the past few years have not improved the situation at all.

He stated that, “In the last ten years, and particularly in the last eight years, a combination of some commercial marketers would affirm that they have what it takes to supply all of the gas that Nigeria needs as far as LPG is concerned, and that there won’t be any kind of shortage in supply again as they have overcome all obstacles that will impede supply.”

“They would say that they had developed all the infrastructure to enable Nigeria to enjoy LPG unbridled, and it was this false presentation that led to the government’s proclamation of gas for all Nigerians in 2021 by former President Muhammadu Buhari, which means that gas is now available to all Nigerians. ” “They would say that they had developed all the infrastructure to enable Nigeria to enjoy LPG unbridled.”

“As soon as that policy was publicly published in 2021, I criticized it because I didn’t see anything on the ground to demonstrate that Nigeria had arrived to a stage where the LPG would be freely available at low rates. I criticized it because I didn’t see anything to show that Nigeria had come to a stage where the LPG would be readily available at affordable prices.

“Not long after that, it became abundantly clear that it was not possible to maintain at that level, as costs increased from approximately N3000 to N10000 for 12.5 kilograms. It wasn’t until the middle of this year that the price dropped to as low as between 5000 and 8000 Nigerian naira, only to start climbing again and accelerate in the last one month to the point where 12.5 kg is sold for between 12,000 and 13,000 Nigerian naira.

It indicates that the price of one kilogram might range from N1000 to N1100, and in some locations it can go as high as N1200 at the moment.

“Consequently, the administration does not have a policy that has been clearly articulated. This is due to the fact that any policy should be informed by empirical studies and substance, specifically the substance of infrastructure and the capacity of the participants to really deliver. As far as I’m concerned, none of these options are available right now.

“It is possible for business interests to come and go. Any corporation can say that they have the technology, equipment, and infrastructure necessary to supply gas to Nigerians, but tomorrow that company’s interest could shift to something else entirely. Therefore, due to the aforementioned reasons, it is vital for the government to take charge, particularly considering the fact that this is a developing sector in Nigeria.

“Abuja was the location of the India-Nigeria gas conference on LPG that took place the previous year. It was an exposé on how Nigeria can genuinely build an LPG policy, taking a lesson from a country that has almost exactly the same developmental issues as Nigeria does in that sector. At the time, I was still the national chairman, and it was about how Nigeria can actually develop an LPG policy.

“Everyone applauded what we got from the Indians who came, and the government promised to look at it and try to pattern Nigeria’s sector in that direction or even go further in knowing how other developing countries that have achieved efficiency in the sector are doing it so that we can equally marry it together with that of India, but nothing has happened since then.” “Everyone applauded what we got from the Indians who came, and the government promised to look at it and try to pattern Nigeria’s sector in that direction.” These are the underlying issues, such as the incapacity of the government to formulate a policy.

He also mentioned that with the loss of the gasoline subsidy, LPG would have provided an alternative source of energy for those who are unable to afford the rising cost of petrol. However, he expressed his disappointment that even LPG is getting more expensive than fuel these days.

“And it is frustrating a lot of Nigerians because many people have come to accept the product as a means of generating energy for usage within the country. It’s the same as if you just abandoned them in the middle of the road.

“Nigeria is transitioning from a rural to an urban society. I do not have the number of people who live in the urban region or those who live in the rural area, but I do know that there has been a phenomenal growth in urbanization in recent times.

“Many little villages have grown into significant metropolitan areas. The large towns that we are familiar with have grown beyond anyone’s wildest expectation, and the inhabitants now have a tough time gaining access to various alternative fuels such as charcoal and firewood.

“And even access to firewood and other related forms of energy by those who live in rural areas raises a concern of environmental issues,” he said. “This is because our environment, which is already under threat, will be exposed to further incursions, which is not good for our efforts to plan for sustainable development.”

However, he bemoaned the fact that the current situation has resulted in the emergence of two new concerns, which Nigerians may be unaware of.

According to him, the issues at hand are the costs involved and the accessibility of the product. He emphasized that the product was not available, and that the price was also quite exorbitant.

In reference to the two contemporary issues that have also played a role in the recent spike in prices, he stated the following: “This present crisis is caused by the devaluation of the naira and the inability of the suppliers, especially the Nigeria Liquefied Natural Gas, NLNG, at Bonny in Rivers State to meet up with local demand as well as the inability of other importers to meet up also.”

In the same interview with furucinovel, the Chairman of the Middle Belt Forum (MBF), Dr. Pogu Birtus, lamented the huge increase in the price of cooking gas and described it as a regrettable turn of events.

As a result of the elimination of the subsidy on gasoline, he regretted the fact that the price of cooking gas, which in normal circumstances would have made it easier to bear the weight of the cost of fuel or energy in general, is progressively becoming out of reach for the typical Nigerian.

“It is unfortunate that the government has allowed the price of cooking gas to skyrocket to the point where ordinary Nigerians cannot afford it,” he added. “Instead of maintaining and stabilizing the price of cooking gas, which Nigerians have seen as a solace to the fuel subsidy removal, the government has allowed its price to skyrocket.”

Therefore, he demanded that President Tinubu’s economic team have a rethink on the ways in which to address the difficulties, noting that “Too much taxation kills the economy and it is affecting the poor and the middle class earners more than anybody else.”

“And as you can see, when we discuss retirees and people who work in the public sector, together they only account for roughly one percent of Nigeria’s total population. Therefore, what happens to those Nigerians who are not earning anything, have never worked, and are forced to rely on their farms and other low-paying employment in order to survive?”

He is one of those who has warned that if the government does not take immediate action to solve the high cost of cooking gas, it would force the people to use firewood and charcoal, which will also, in the long run, have an effect on the forest. He is one of those who has warned that this will drive the people to adopt cooking methods that will damage the forest.

He was quoted as saying, “Cooking gas ought to have been sold at a very low price.” In point of fact, if there is going to be a subsidy for anything, it ought to be on cooking gas because this will allow for the problem of deforestation to be resolved.

“All you have to do is travel across the country and take note of how much firewood and charcoal are being bought and sold. It is not required at all. As a result of the prohibitively high cost of cooking gas, we are cutting down trees and destroying our forest.

In all seriousness, Nigeria ought to subsidize the cost of cooking gas. The price should be kept as low as possible so that people would cease cutting down our trees, so contributing to the creation of desertification and the loss of many other types of life, including the wildlife. When the forests are logged or cut down for other uses, not only the flora but also the fauna are put in jeopardy.

That will also mean that we will be losing our woods at a faster and faster rate, which will ultimately lead to deforestation. Because of this, the entire ecosystem will inevitably be impacted. Wild creatures will be unable to find a place to rest, there will be an increase in desertification, and a great number of other negative consequences will come into play. And of course, there will be resistance to the oppression on the part of the people who are being driven to their breaking point when the hardships become intolerable to them.

It is therefore in the best interest of the government to lower the cost of cooking gas, since this will discourage individuals from turning to the purchase of firewood or wood for the production of charcoal.

But according to Alhaji Yerima Shettima, the head of the Arewa Youth Consultative Forum, he told DAILY POST that inflation in the country was the reason why the price of everything, including cooking gas, was increasing.

When there is inflation in a country to the degree that we have it in this area right now, you can expect the price of everything to go up. Therefore, the rise in the cost of cooking gas is not the only issue at hand; rather, the situation as a whole is problematic due to the fact that so many other things do not conform to their typical patterns. It is a difficult time, and I want everyone to know that we need their help to solve this issue,” he stated.

He expressed regret that the impoverished masses had been on the receiving end of it, but he cautioned that the government must avoid incurring the fury of the public by reacting to the situation in a timely and adequate manner in order to prevent incurring the wrath of the masses.

“The government must investigate it completely and what it has become because the moment an average man cannot cook in his house because even the gas, not only the raw food has now become an issue, then you are likely to have the people rebel somewhere along the line. This is because even the gas has now become a problem.

Therefore, the government needs to turn inward, formulate policies that will examine the issue, and begin working on a solution as soon as feasible. And because people are unable to contain it for the long term, this can only be a solution for the short term.

“There is no way that people can continue to manage it in the current state. Therefore, the government needs to quickly devise a solution that is superior to the current one,” he stated.

However, according to Dr. Tony Ugwu, a visiting professor at Usman Dan Fodio University and Deputy Director of the Neurotrauma Centre at Nnamdi Azikiwe University, the consistent increase in the price of cooking gas may not be solely attributable to inflation, as some other people have stated.

He is of the opinion that even if LPG is manufactured in Nigeria, the country’s current production capacity is not sufficient to meet the demands of the burgeoning population of Nigerians who are interested in purchasing the product.

As a result of the subsidy being removed from petrol, he also brought attention to the fact that Nigerians now use it to power their generators, which was another point of interest.

According to statements made by Ugwu to the furucinovel, “The fact that the cost of cooking gas is rising and is almost hitting the rooftop should not come as a surprise to Nigerians who are discerning.”

“This is due to the fact that the majority of Nigerians no longer use it for cooking; rather, as a direct result of the elimination of fuel subsidies by the federal government, they instead utilize it as a substitute for gasoline in order to run generators. According to him, this is one of the factors that has contributed to the consistent increase in the price of it.

He also cautioned that one of the consequences of the steady increase is that people will return to the traditional way of cooking in the area, which involves the use of firewood and charcoal.

“And most individuals are engaging in that activity right now. If you look, you’ll see that it’s already having an effect on the prices of firewood and charcoal, which is another thing that will go horribly wrong.

He cautioned that “so, the government just needs to do something very urgent to arrest the rising cost to avoid the people’s revolution,” which may be the eventual result if nothing is done to address the trend. “So, the government just needs to do something very urgent to arrest the rising cost,” he said.