L.iquefied petroleum gas (LGP) or cooking gas is beyond the reach of the average Nigerian as many turn to coal or firewood.
One kilogram of cooking gas now costs N625 or more depending on the location, forcing many households and restaurants, especially in urban centers, to look for alternative cooking methods.
Firewood and charcoal counters are now smiling at the banks as deforestation increases.
At a time when global warming is affecting parts of the world, stakeholders are warning of the consequences for residents and the environment.
Many increases in months
In Nigeria, as of June 2021, 206.53 trillion cubic feet of natural gas reserves have been secured, but the price of cooking gas has exceeded the capacity of Nigerians, with five increases in three months.
According to a survey conducted by our correspondents on Tuesday, the price of various kilograms of LPG increased by more than 50 percent, selling 12.5 kilograms at N7, 800 or more, and in less than a month, N6,500.
Some gas consumers who spoke to our reporters during a market survey in Lagos, Abuja, Kano, Kaduna and Nassara states that the situation has forced many poor Nigerians to use coal-fired stoves.
According to gas price records, the market has started to increase its production price from N3,600 / 12.5 kg cylinder to N4,200 in April this year. As of May, gas filling factories sold 12.5 kg for N4,700. In June, N5,000 and N5,700 reached early July.
It is estimated that those who buy low volume volumes such as 3kg, 5kg, 8kg and 10kg have paid more than 50 percent of what they paid in March.
The Petroleum Products Pricing Regulatory Agency (PPPRA) recently reported that LPG volume in August decreased by 20.5% to 85,264.803 metric tons (MTA) from 107,224.584MT in July and 102,787.234MT in July.
According to distributors, this sharp decline could have a significant impact on the retail price of the product.
In a recent statement, PPRA Executive Director Abdulkadir Saidu said that out of the 85,264MT volume 38,040.457MT in the area, Over Oil, Stokep, NIPCO, 11 H.C. Ltd. In August.
However, a large portion of the 47,224.346MT was imported by NIPCO, Matrix, Algasco, Techno Oil, Predent, A. Rano and Stokep. There were more exports than in the United States. Algeria and Equatorial Guinea in Africa.
Gas prices have been rising since April – NBS report
According to a recent report by the National Bureau of Statistics (NBS), the average price of a 5-kilogram cylinder for filling gas has increased by N2,057.71 and N0,057.71 by 0.56 percent in March 2021. 069.21 April 2021
As of Tuesday, 5 kilograms of cooking gas in Abuja had been sold for N3,250.
According to a recent report by NBS, the average price of a 5 kg cylinder cooking gas in August rose from N2,141.59 in 3.44% to N2,215.33 in July. Production increased by N3, 025.45 by Aku Ibom. Benue at N2, 825.00 and Juja at N2, 521.43. Prices were lower in Abuja at N1, 806.66, in Ondo at N1, 840.81 and Lagos at N1, 847.70.
The average price for filling a 12.5 kg cylinder also increased by N4,514.82 in August by 2.09% to N4,422.32 in July 2021 and in Abuja (N5,837), Kogi (N5,237) and Ogun (N5). , 170) but the cheapest in Niger (N4,021), KBB (N4,042) and Jijiga (N4,079).
Some gas consumers have blamed the federal government for failing to control prices in the open market.
In many parts of Lagos, one kilogram of cooking gas is sold for N600, which is N7, 500 for a 12.5 kg cylinder and N3, 560 for a 6 kg cylinder.
Vivian Kogo, a Lagos resident, said the rising cost of burning gas was so high that kerosene was so expensive that many were using charcoal and firewood.
“By the way, at the end of the year, gas prices could rise to N1,000 per kilogram,” he predicted.
Kate Okpalefe, who lives in Ketu Ijanikin, said many of her neighbors started using coal pots because they could no longer buy gas.
Taxi driver Aina Babatude said he left the gas stove behind. “Most of us can no longer afford cooking gas; The government must do something about it. Prices are rising every day.
Haji Muinah Fagbohun, a restaurant expert in Abuja, denounced the increase.
“The government must win over gas traders to bring down gas prices,” he said.
Housewife Selamatu Belo, for her part, said she bought 3 kilograms of N2,750 at a renovation factory instead of the N2, 200 she paid in August.
“I bought that little gas in the car and it increased by N550 yesterday. It is difficult for us to use gas now and it is not helping with kerosene prices, ”he said.
John Abu said that the highest record in Abuja on Saturday was the purchase of 12.5 kg of gas for N7,800 for N7,800.
“It has never been so high. I think we should look for a cheaper alternative, which could be a coal stove. ”
During the review period, the price of a kilogram increased from N320 to N600.
Book distributor Musa Mando called for price controls as cooking gas is now beyond the reach of the masses.
Abba Ibrahim, of Hotoro Quarters in Kano, said he had changed his use of kerosene.
“I don’t have the capacity to cook gas right now. At N300 or N320 per kg. I have no choice but to have a stove; He said.
Marketers criticize forex, VAT
Daily Trust It reports that traders have taken various explanations for the trip due to the fall in the forex crisis.
Some blamed low supply and gas imports for VAT.
Mama Sagir Belo Baba, a cooking gas seller in the Tarauni area of Kano, said he had never seen such a sharp rise in cooking prices before.
“Our business, our livelihood, is collapsing. The government must do something. ”
Aminu Issiaka, the chief trader of Cano Kurnan, said the implications were many.
“Many people have been fired. There is a lot of pressure on the forests because loggers are cutting down trees in forested areas.
“And most importantly, the growth is a serious setback for the federal government’s green initiative. People have been sensitized over the past few years to stop cutting down trees, and after the protests, many began to use gas, but now they are no longer rich.
We know there is no subsidy on gas and I wonder where the problem lies.
Reversing the tax regime
Mr. Silvanus Ogona, who sells cooking gas in the Lagos Ejaja area, said the increase in the price of cooking gas has imposed a 7.5 percent tax on imported LPG.
“There has been no constant price since the last two weeks. The price is changing due to the nature of our supply and the increase in VAT,” he said.
Alhaji Mohammad Ode, who is responsible for the forex crisis, said the government should always take the people into account when formulating policies.
According to a management source, one of the four major importers: The price of imported natural gas is in dollars. So as the price of Nara decreases, so does the price.
“The federal government has reintroduced the VAT, which has been suspended for almost three years, to reduce the price of LPG. The government is looking for revenue everywhere and is forced to re-produce VAT.
But the worst part of the government’s action is that these VATs have been delayed until 2020, which now has a debt of more than $ 1 billion to the four major importers.
The source also said that due to the latter VAT, all companies relied on NLNG supply, so most companies did not import.
Mr. Basse Isin of the Nigerian Liquid Oil Traders Association (NALPGAM) on his part said Nigeria consumes about one million barrels of cooking gas a year, of which 65 percent is imported.
SCN said CBN does not have a window on foreign exchange for cooking gas importers. So the high value of foreign exchange eventually determined its value.
“As markets, we, NLNG and other gas producers, need to identify a sufficient amount for domestic consumption and distribute cooking gas production chains,” he said.
Commenting on the rise in gas prices, Lagos-based oil industry analyst Suraj Oyewale said the main reason for the rise in gas prices was a decline in foreign exchange.
“Domestic gas contracts are often priced in dollars, even for gas supply. However, in recent years, due to a shortage of foreign exchange, gas suppliers have often received official exchange rates at gas refineries and other wholesale buyers.
NPC blames low supply, FG
Mama Mele Kari, Group Managing Director of the Nigerian National Petroleum Corporation (NPC), said gas shortages were a major challenge.
Carrie made the remarks during a recent visit to the Department of Petroleum Resources (DPR) in Abuja.
“Today this country is short of gas. I can tell you that we are having trouble feeding our network across the country. Daily gas supply is a problem. Once your supply is poor, it will affect pricing. ”
He said the corporation was working on a strategy to expand its network with other sister agencies, which would later deliver gas directly to end-user homes.
“If we do this, all the cylinders will be useless. That’s why I don’t see them used in many developed countries. When we can turn on gas heaters that are closest to the country and consumers, eventually homes will be equipped with electric cookers and appliances and that way, you will have less demand for cylinders.
“We are moving forward and we will continue to add more volume to the market to lower prices.”
Sunday M Og, Simon E Sunday, Zechariah Adaramo, Faruk Shuaybu (Abuja), Christina T Alabi, Eugene Aga (Lagos), Ibrahim M. Gigginyu (Kano) and Abdul Qadir Shehu Hu (Kaduna)