As from next week, cooking gas consumers in Nigeria are expected to pay increased prices as a result of rising international prices, higher taxes, increased vessel costs, forex scarcity, and naira devaluation.
This is according to the President of the Nigerian Association of Liquefied Petroleum Gas Marketers, Mr Olatunbosun Oladapo, who claimed that gas consumers should brace themselves for the price hike coming few days time.
He cited rising international prices, high tax rates and prices of vessels, forex scarcity, and naira devaluation as some of the reasons for the intended price review.
“It is starting next week because international prices have gone up. The prices of vessels have gone up and taxes are high, but consumers are not earning more.
What Hike in Cooking Gas Price Portends for Nigerians?
Oladapo expressed concern that consumers’ purchasing power has decreased, and many are turning to alternatives like firewood, charcoal, and sawdust for cooking. He urged the government to provide relief through reduced taxes and levies, as well as supporting profit-based taxation.
The scarcity of vessels in the international market is expected to contribute to higher prices of Liquified Natural Gas (LNG), impacting local prices of cooking gas.
As of August 1, charter rates for vessels surged, leading to potential price hikes for heating fuel.
The devaluation of the local currency further compounds the situation, as the Nigerian Liquefied Natural Gas Contract prices are internationally benchmarked and subject to market dynamics.
Consumers had previously enjoyed lower prices due to a drop in international prices, but the naira devaluation has reversed this trend.