Energy crisis: Rising costs for cooking gas cause further issues for homes and others

The cost of cooking gas, also known as liquefied petroleum gas, or LPG, has increased to N14,150 for a 12.5 kilogram cylinder, representing a 38 percent YoY increase from the N10, 323.33 it sold in April of the previous year.

This is happening at the same time that the domestic market price of aviation fuel increased by 33%, from approximately N1,000 to between N1,300 and N1,500 per litre.

Nevertheless, investigations conducted by Energy Vanguard also revealed that, during that time, the cost of 5 kg of gas rose by 37%, from N4, 642.27 to N5, 700.

Cooking gas prices will keep rising as long as the foreign exchange crisis affects the domestic market, according to Mr. Oladapo Olatunbosun, President of the Nigerian Association of Liquefied Petroleum Gas Marketers, or NALPGM, in an interview with Original Kel TV.

"The price of LPG is still priced and determined by the flow of foreign exchange, so it is expected that it will follow suit when the foreign exchange increases."

"Despite the declaration of the decade of gas and the government's push to make gas a transition fuel, low production and rising prices have continued to push Nigerians away from the use of cooking gas," stated Ekperikpe Ekpo, Minister of Petroleum (Gas).

"You have witnessed the federal government's demonstration as they have removed all tariffs and levies associated with the import of equipment linked to gas. It is a significant motivator for the problem.

"We are communicating with the important parties to make sure that cooking gas is not exported. Domesticating all cooking gas produced in the nation will be necessary, and once this is done, the volume will rise and the price will inevitably plummet.

"I have virtually daily meetings with the regulator, the Nigerian Midstream and Downstream Petroleum Regulatory Authority, and gas producers, including Mobil, Chevron, and Shell. Thus, there is optimism that things will improve.