Why Cooking Gas Prices Are Rising – Marketers Explain!

Reported by Marian Opeyemi Fasesan | Sele Media Africa

Cooking gas prices in Nigeria have spiked again, with a kilogram now selling for as high as ₦2,000 in several parts of the country. This surge has sparked public frustration and renewed concern over energy affordability.

What Marketers Are Saying:

• Foreign Exchange Crisis: The devaluation of the naira has driven up the cost of importing liquefied petroleum gas (LPG) and related components, according to the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM).
• Supply Chain Challenges: Delays at ports, high vessel charges, and increasing haulage costs have contributed to pricing pressures.
• Scarcity of Local Supply: Despite Nigeria’s natural gas reserves, domestic LPG production remains low, forcing heavy reliance on imports.
• Multiple Levies & Taxes: Marketers say they are burdened with regulatory fees from agencies like NMDPRA and SON, which trickle down to consumers.

Impact on Nigerians:

• Many households are switching to charcoal, firewood, or kerosene, raising health and environmental concerns.
• Small food businesses and roadside vendors report shrinking profits due to daily increases in operating costs.

What’s Next?

• LPG stakeholders are urging the federal government to boost local gas processing, improve forex access, and streamline port clearance for gas imports.
• Analysts warn prices could remain volatile unless structural reforms are implemented in the energy sector.

Citations:

1. ThisDayLive: www.thisdaylive.com/2021/01/12/marketers-blame-dpr-pppra-for-rising-cooking-gas-price/?utm_source=chatgpt.com
2. Businessday NG: businessday.ng/news/article/explainer-here-is-why-cooking-gas-prices-are-going-up/?utm_source=chatgpt.com
3. Tribune Online: tribuneonlineng.com/why-cooking-gas-price-skyrocketed-in-nigeria-%E2%80%95-operator/?utm_source=chatgpt.com
4. Vanguard News: www.vanguardngr.com/2023/11/why-price-of-cooking-gas-is-high-nlng-boss/?utm_source=chatgpt.com
5. Independent Newspaper Nigeria: independent.ng/cooking-gas-price-soars-as-scarcity-worsens-across-nigeria/?utm_source=chatgpt.com

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