Business
Cooking gas price hits 105% in one-year
Cooking Gas
The average retail price for refilling a 5kg cylinder of Liquefied Petroleum Gas (cooking gas) increased by 105 per cent within the last twelve months, findings by The Punch have revealed.
This follows an increase from N2200 in August 2021 to N4500 in August 2022, indicating a 105 percent increase over the period.
The exponential increase in the price of cooking gas also follows a similar trend with other deregulated petroleum products such as kerosene and diesel, which have also recorded significant spikes this year.
It was reported that the price of kerosene used by several families have jumped to N800 per litre just as the market is beginning to adjust to the newly increased petrol and gas prices.
A market survey conducted by our correspondent showed that one litre of cooking kerosene, which sold earlier for N700, now sells for between N800 and N850 in urban parts of Lagos State, while the price has hit as high as N1000 per litre in suburb areas at filling stations.
In the same vein, the price of diesel continues to maintain an all-time high of between N750 to N800.
According to the all items index of the latest Commodity Price Index (inflation report), the highest increases were recorded in prices of gas, followed by liquid fuel, solid fuel, garments, passenger transport by road, cleaning, repair and hire of clothing as well as passenger travel by air.
He said, “The reason is very simple and straightforward. The model the Nigerian leaders, in this case our economic and political leaders, are using for the downstream sector of the Nigerian oil and gas industry is very wrong. It is a wrong model. That is the simple reason. The answers are not far-fetched. Why is cooking gas not this expensive and inaccessible in other OPEC member countries and other gas exporting fora (Gas Exporting Countries Forum)?
“From natural gas, you can always get cooking gas, by the time you treat it. When you refine crude oil, the first product that will come out is LPG. In all the OPEC member countries that produce crude oil and have functional refineries, they are not complaining about cooking gas. It’s not part of their problem. The only countries that are complaining today are countries that do not have oil and gas.”
According to him, under ideal circumstances, the price of a kilo of cooking gas in Nigeria should not exceed N100, as was obtainable in other countries with an abundance of oil and gas deposits.