- High cooking gas price has driven Nigerians to other alternative energy sources
- Cooking gas dealers say the price of the product has stabilized but that consumer demand has dropped sharply
- Cooking gas marketers confirm the availability of the product at depots but state that consumers have chosen other alternatives
Pascal Oparada has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy.
Liquified Petroleum Gas or cooking gas dealers have reported a sharp drop in demand for the product despite interventions by the Nigerian government.
Dealers disclose what consumers use in place of cooking gas
Gas dealers revealed over the weekend that demand for the product fell due to low income and consumers' poor purchasing power.
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Punch reports that retailers confirmed that consumers' demand for the product declined sharply due to high inflation, which has pushed the cost of the commodity above the average household in Nigeria.
The sellers reportedly said most users no longer buy the 12.5kg, preferring to use the 5,6, or 3kg to save cost. Alternatively, they have turned to other energy sources, such as kerosene and charcoal.
Feelers from the market show that the prices of a 12.5kg cylinder now sell between N11,000 and N12,000, depending on the location.
Marketers confirm adequate gas supply
President of the Nigerian Association of Petroleum and Gas Marketers, Dapo Olatunbosun, revealed that although the Nigerian government, via the Liquified Natural Gas Limited (NLNG), recently ensured adequate supply of the product locally, the prices are still very high, leading to consumers abandoning the product.
According to Olatunbosun, the commodity's price has stabilized and dropped slightly.
"Every depot is wet now. Supply is better. Price is stable at N16m per 20 metric tons- it could have been worse. But demand is falling amidst people's low income and poor purchasing power.
The development follows the disclosure by marketers that depot owners were to blame for the hike in the price of the product.
The marketers said 12.5kg could hit as high as N18,000 by December without care.
NLNG absolves itself in the rising price of gas
Earlier, Legit.ng reported that the NLNG said it was not to blame for the recent hike in the commodity price.
The NLNG said other factors, such as FX and freighting, were primarily responsible for the product's price.
It also revealed that one of its facilities, the NLNG Train-7, is about 52% completed and could route about 22 million tonnes of the product annually.
A recent survey showed that as of the beginning of October, the price of 20 metric tonnes at the NLNG train 22 moved from N10 million to N16 million, a 66% rise in price in one month.
Depot operators blamed the product price rise on foreign exchange and the international market.
N1,000 per Kg: Nigerians lament increase in cooking gas price as country celebrates 63rd anniversary
Legit.ng reported that Nigerians have expressed dissatisfaction with the hike in the price of cooking gas, which has reportedly hit over N1,000 per kilogram (Kg).
Those who bought cooking gas recently told Legit.ng they were unhappy with the increase in cooking gas prices and how hardship in Nigeria persists.
This is coming after Marketers of Liquefied Petroleum Gas warned that Nigerians may have to pay more for cooking gas in the months ahead.