Urgent Action Needed as Cooking Gas Prices Skyrocket in Nigeria

News/Opinion

Urgent Action Needed as Cooking Gas Prices Skyrocket in Nigeria

Reported by Ibadan Media

The price of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, has surged dramatically from N700 per kilogram in June 2023 to N1,500 per kilogram by October 2024. This steep increase, which occurred within a little over a year after President Bola Tinubu took office, calls for immediate and strategic intervention from the Federal Government.

According to The PUNCH, The price hike is largely attributed to the unfavorable foreign exchange rate, which has made it increasingly difficult for importers to access necessary funds. Additionally, the devaluation and floating of the naira under the Tinubu administration have further weakened the currency. From less than N700 per dollar in May 2023, the naira has now depreciated to about N1,700 per dollar.

Despite Nigeria being a major oil-producing nation, the country remains heavily reliant on imports for its LPG supply. In response, the Federal Government announced on Tuesday that it would halt the export of locally produced cooking gas to prioritize domestic needs. This measure, set to begin on November 1, aims to address the skyrocketing prices and alleviate the economic burden on Nigerians, according to Ekperikpe Ekpo, the Minister of State for Petroleum Resources (Gas).

In August, Ekpo had pledged to bring down the cost of LPG by engaging regulators and producers to find solutions. However, the price has only continued to rise, exacerbating the already dire economic situation for many Nigerians. The escalating cost of cooking gas is yet another indicator of the increasing economic hardship facing citizens.

Suresh Kumar, Managing Director of Nigerian Independent Petroleum Company, disclosed that over 60% of the cooking gas consumed in Nigeria is imported. This dependency is due to the government and the Nigerian National Petroleum Company’s (NNPC) failure to invest in local production facilities, which would have strengthened the oil and gas sector.

Nigeria, which holds the 10th largest gas reserves global approximately 208 trillion cubic feet—should not be overly reliant on imported gas. However, local production remains insufficient to meet growing demand.

For many Nigerians, cooking gas is a crucial energy source for their households. Yet, the government's lack of foresight and inadequate actions have led to shortages, pushing cooking gas beyond the reach of the average citizen. This trend cannot be allowed to continue.

President Tinubu's administration must prioritize making Nigeria livable for its citizens by urgently addressing the rising cost of cooking gas. Failure to reduce these prices could push struggling citizens over the edge, intensifying the already crushing economic hardship.

Moreover, the rising cost of gas may force many households to resort to using harmful alternatives such as firewood, charcoal, and sawdust for cooking. These fuels are known to cause severe health problems. The World Health Organization (WHO) reports that 3.8 million people die annually from illnesses linked to household air pollution caused by dirty cooking fuels, with women and children being the most affected.

To curb this crisis, the Federal Government should focus on increasing local LPG production by incentivizing the conversion of more propane output into propane for domestic use. In addition, significant investments are needed to expand cooking gas production to meet the growing demand. Until Nigeria boosts its gas production, prices will continue to rise, further straining the lives of its citizens.